Jan-v.\hy 1, 1921 



THE INDIA RUBBER WORLD 



241 



THE SUMMARY 



Artificial light can now be produced by wliich all kinds of labor 

 can be performed as efficiently as by daylight, and in some cases 

 more efficiently. 



Since light is the only difference between the day and night 

 conditions for work in the factory, there is no necessity for the 

 plant being idle at night. 



The continuous operation of plant is the greatest source of 

 economy in production that can be made, short of a large invest- 

 ment in more efficient machinery if such is obtainable. 



Sunlight is insufficient for tho full day shift, and artificial light 



is therefore a necessity. It should enable the worker to produce 

 as much as by the best daylight. 



Compared with the cost of labor, the cost of light is a negligible 

 quantity. 



There is no excuse for industrial accidents from inadequate 

 lighting. 



Light is the most vitally important of all the facilities neces- 

 sary for the performance of labor. It should be given correspond- 

 ingly careful consideration. 



In the next article the fundamental principles pertaining to the 

 use of light will be discussed. 



Cost Accounting in the Rubber Industry — W 



By Ferd 

 PRIVATE LEDGEJl ACCOUNTS 



FIGURES 2, 3 and 4 are charts of private ledger accounts, cov- 

 ering the accounts of a rubber heel factory. The accounting 

 for this plant will be used as an example to demonstrate the 

 methods suggested. It will be noted that the order of the accounts 

 in the ledger is the same as that in which they appear on the state- 

 ments shown later. Assets are arranged in order of their avail- 

 ability and are followed by liabilities in order of priority. These, 

 in turn, are followed by the various revenue and expense ac- 

 counts in logical .irder. This arrangement greatly simplifies the 



G. Kirby' 



and credited with tlie i|uantitics of materials consumed, which 

 will be dclermincd by the reports provided through the material 

 requisitions. The balances appearing in these accounts at the end 

 of each month represent the inventory value of raw materials on 

 hatid, the amount of material, labor and burden in process and 

 amount of material, labor and burden on hand of finished prod- 

 uct, and the amount of burden unabsorbed and overapplied. 



VOUCHER AND CHECK REGISTER 



As indicated in the foregoing, in this particular application of 

 costs shown, no ledger was kept for accounts payable. The 



preparation of all statements, reducing it to a simple matter -of 

 Cdjjving off the amounts from the ledger. 



Any of the accounts as shown may be subdivided and the sub- 

 division indicated by placing an additional letter after the account 

 symbol, thus A3, accounts receivable customers, may be sub- 

 divided : 



A3a — .'\ccounts receivable, city. 



A3b — Accounts receivable, foreign, etc. 



The account symbol is placed upon the outer upper corner 

 of the ledger sheet, and the sheets arranged alphabetically in the 

 ledger by sections. In each subdivision thus established the ac- 

 counts are arranged numerically. 



INVENTORY ACCOUNTS 



The inventory accounts as detailed in the foregoing are charged 

 with the result of physical inventories when taken. For each 

 succeeding month they are charged with all material purchased 



1 Continued frcm Thk India Rlbber World, December 1, 1920, pages 

 155-157. 

 ' Accountant, R. T. Lyman & Co., Inc. 



voucher register serves both as a purchase ledger and check 

 register and, as invoices are paid, the proper purchase accounts 

 are debited. At the end of the month all unpaid invoices, the 

 goods for which have been received, are entered at the foot of 

 the voucher register, and their amounts distributed in the various 

 debit columns. The total amount of these unpaid invoices, in 

 stead of being entered in the "Amount of Check" column, is car- 

 ried to the ".\ccounts Payable Cr." column, from whence it is 

 posted to the private ledger. The next month, when these vouch- 

 ers are paid the checks are entered in the "Accounts Payable 

 Dr." column instead of being charged to the purchase accounts. 

 In this manner the ledger will show the amount of unpaid bills 

 at the first of each month, and at the same time the necessity 

 of a purchase ledger and a separate disbursement record is 

 avoided. 



This arrangement was possible in this particular case because 

 it was desired to distribute the charges to the various inventory 

 accounts only when the bills were actually paid, instead of when 

 the invoices were received. 



