98 FARM ACCOUNTING 



accounting. Except from the auditor's point of view, the 

 book is a very useful one. Especially is its use adapted to 

 the farm because of the fact that all transactions can be 

 recorded in the one book of original entry and because a 

 great saving is made in the amount of posting. It is not 

 practical to use the simple journal alone because of the 

 volume of posting. The cash book, if used, must always be 

 accompanied by the journal, thus necessitating the use of 

 two books aside from the ledger, if the simple cash book is 

 used. 



A variety of forms may be devised for the cash journal. 

 The principle upon which all cash journals are founded, 

 however, is that special debit and credit columns are pro- 

 vided for those accounts which are affected the greatest 

 number of times by transactions in the business in ques- 

 tion. In any business, cash is usually affected a great 

 many times. This always gives rise to the use of special 

 columns for cash, which fact is largely responsible for the 

 name of the book. 



Besides the cash columns there are invariably at least 

 two other columns, one on the debit and one on the credit 

 side. // there is only one column on each side of the cash 

 journal in addition to the cash column, such additional 

 columns are called "sundry" and are used in the same 

 way as the columns of the simple journal. A cash journal, 

 then, always has at least two debit and two credit columns, 

 and it may have as many more as are demanded by the 

 nature of the transactions. It is not necessary that there 

 be an equal number of debit and credit columns, but it is 

 essential that debits and credits of equal amount shall be 

 expressed for each transaction. 



Illustrations 22 and 23 present the cash journal, and the 

 ledger accounts created from its entries. For comparative 

 purposes, the same transactions are used as in Illustrations 

 18 and 19, in which the journal was used alone; and in 



