CHAPTER XXIV 

 CREAMERY BOOKKEEPING * 

 A. DEFINITION AND GENERAL INFORMATION 



BOOKKEEPING is the science of making a systematic record of 

 business transactions. By a business transaction is understood 

 an exchange of values. 



I. Systems of Bookkeeping. The systems adopted by the 

 various firms differ greatly so as to meet the needs of the va- 

 rious concerns. There are two general systems known in book- 

 keeping which include all; these are " Single Entry " and Double 

 Entry Systems." 



1. The Single Entry System. By single entry is understood 

 an entry to only one account. This may be a credit or a charge. 

 Only personal accounts are affected by this system and the 

 books will show no balance and consequently no profit or 

 loss. 



2. The Double Entry System. By double entry is under- 

 stood an entry that is made twice. If a credit is made to 

 one account a corresponding debit is made to some other 

 account. By this system the ledger is kept in balance per- 

 petually. 



II. The Ledger. The ledger is conveniently divided into 

 two parts: first, the general ledger; second, the debit ledger. 



i. The general ledger is a book which contains a summary 

 of all of a firm's business transactions. It shows its resources 

 and liabilities. 



1 It is suggested that students familiarize themselves with "Accounting Records 

 for Country Creameries," by Nahstoll, Bulletin No. 559, U. S. Department of 

 Agriculture, 



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