1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-3 Selected Transactions in a Voucher System

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 5-3 PURCHASES RETURNS AND ALLOWANCES page 155 August 12. Issued Debit Memorandum No. 98 to Ramsey, Inc. for return of merchandise purchased, $85.00. Cancel Voucher No. 652. Voucher No. 655. 1.Cancel the original voucher. 2.Prepare a new voucher. 3.In the voucher register, reference the new voucher number. 4.Record the new voucher. 5.File the new voucher by its payment date in the unpaid vouchers file.

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 5-3 RECORDING PAYROLL IN A VOUCHER REGISTER pages 156 and 157

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 5-3 A PAYROLL VOUCHER page 156 A Payroll Register is needed to record payroll. Therefore, just the SUMMARY is listed on the inside of voucher. The outside of the voucher is prepared similar to other vouchers.

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Payroll 5 LESSON 5-3 $3,000.00 2,854.00 $5,854.00 Payroll 8/31/-- $4,331.96 878.10 175.62 380.51 87.81 $5,854.00 694 Medicare Tax Payable

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 5-3 ADVANTAGES OF A VOUCHER SYSTEM 1. 1.Only a few people can authorize and approve all cash payments. 2. 2.A voucher jacket provides a convenient way to file invoices and related business papers for future reference. 3. 3.Unpaid vouchers are filed by their payment dates to help ensure payment of invoices within the discount periods. 4. 4.An unpaid vouchers file and a paid vouchers file eliminate posting to an accounts payable ledger. 5. 5.A paid vouchers file provides three different and easy ways to find information about a paid voucher. page 158

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Audit Your Understanding 1.What accounts are affected, and how, when a debit memorandum is issued for the return of merchandise purchased and the original voucher is canceled? 2.What is the first step in canceling a voucher? 3.Where is the information obtained for preparing a voucher for payroll? 7 LESSON 5-3