24 



The Florists^ Review 



Apbil 2T. 1922 



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Here Is a Page Showing How Entries Are Made in tiie 30-CoIunin Gish 



placed in the cash drawer with the 

 money, while the duplicate is left in the 

 receipt book for reference in case the 

 triplicate copy is lost. At the close of 

 the day's business the triplicate re- 

 ceipts are classified, arranged in alpha- 

 betical order and totaled on the add- 

 ing machine; the total should equal 

 the amount of money in the cash 

 drawer. This total is entered in the 

 cash journal to the debit of cash and 

 ■credited to the Accounts Eeceivable con- 

 trolling account through the special col- 

 umn. The receipts are then copied in 

 the collection journal, which is subsid- 

 iary to the cash journal, after which 

 they are ready to be posted to the credit 

 of the corresponding accounts in the cus- 

 tomer 's ledgers. 



Accounts Payable. 



We do not make any record of the 

 amounts we owe our creditors until we 

 pay these obligations, except to keep the 

 invoices carefully filed in a special al- 

 phabetical file provided for that purpose. 

 We formerly entered each invoice as it 

 came in, but found that this practice en- 

 tailed a great deal of bookkeeping, and 

 that the information it furnished was 

 not worth the effort. We have consid- 

 ered the voucher system as applied to 

 accounts payable, but cannot see that 

 it would prove beneficial to our business. 

 Of course, it is necessary to enter these 

 accounts at the end of tlie year in order 

 to determine the exact status of the 

 business, but after our books are closed 

 wc make a journal entrj' reversing these 

 ontries and charge these items direct to 

 the account affected when we pay them. 



Cash Journal. 



We handle all our transactions 

 through a oO-coluinn cash journal, using 

 a double column for the accounts having 

 IrtMjUL'nt debits and credits, and single 

 columns for expense accounts which 

 rari'ly have a credit. Tlicse columns are 

 arranged as follows: Cash; General 

 Ledger; Commissions; Accounts Eeceiv- 

 able; Interest and Discount; Purchases; 

 Sales; Greenhouses; Farm; Store; Of- 



fice; Postage; Delivery; Freight, Ex- 

 press and Parcel Post; Payrolls; Green- 

 house Repairs; Ice, Heat, Lights and 

 Water; Advertising; Dues; Telephone 

 and Telegraph; Savings. The Cash col- 

 umn is debited with all money received 

 and credited with all money paid out, 

 whether by cash or check. The General 

 Ledger column takes care of all ac- 

 counts not provided for by the other 

 columns and is referred to sometimes as 

 the Sundry column. The column for 

 Commissions is charged with all com- 

 missions allowed agents and F. T. D. 

 members and credited with all commis- 

 sions deducted when paying F. T. D. 

 bills. The Accounts Receivable column 

 is debited with all items that are to be 

 charged on the customers' ledgers and 

 credited with all items that are to be 

 credited on these ledgers. At the end 

 of each month the totals are posted to 

 the Accounts Receivable controlling ac- 

 count, the balance of which should cor- 

 respond with the amount on the cus- 

 tomers ' ledgers. The column for Inter- 

 est and Discount is charged with all in- 

 terest paid on borrowed money and dis- 

 counts allowed on wholesale accounts, 

 and credited with all interest received 

 on notes receivable and discounts taken 

 for the prompt payment of accounts. 

 The Purchase column is charged with 

 all merchandise purchases, such as cut 

 flowers, ribbons, designs, boxes, etc., and 

 credited with all goods returned and 

 rebates allowed us. The Sales column 

 is charged with all refunds and adjust- 

 ments made by us to our customers and 

 is credited with all sales, whether cash 

 or charge. Through the Greenhouse col- 

 umn we charge all the exjienses paid for 

 the greenhouses, such as payrolls, coal, 

 electric x)ower, plants, bulbs, seeds, etc. 

 We credit this account with all stock 

 furnished the store, figured at the aver- 

 age wholesale market price. The 

 Farm column is charged with all ex- 

 pense items paid for the farm and 

 is likewise credited with all stock fur- 

 nished the store at a reasonable whole 

 sale price. The Store column is charged 

 witli ail incidental items that cannot be 



otherwise classified. The Office column 

 is charged with all office expenses, such 

 as stationery, pens, pencils, ink, ledger 

 sheets, etc. The Postage column is 

 charged with all straight postage on cor- 

 respondence and statements sent out. 

 The Delivery column is charged with all 

 truck repairs and expenses. The col- 

 umn for Freight, Express and Parcel 

 Post is charged with all money paid out 

 for these items, whether incoming or 

 outgoing, except the transportation 

 charges on items purchased for the farm 

 and greenhouses, which are charged to 

 these accounts. All salaries and wages 

 paid at the store are charged to Payrolls. 

 All repairs to greenhouse buildings and 

 heating equipment are charged to Green- 

 house Repairs, and the total is charged 

 against the reserve for depreciation at 

 the end of the year. All money paid for 

 Ice, Heat, Lights and Water at the store 

 is charged to this account. All money 

 paid for advertising and for postage, sta- 

 tionery, etc., used in direct-by-mail ad- 

 vertising is charged to Advertising. All 

 money paid for dues in business organ- 

 izations, whether local, state or aational, 

 is charged to Dues. Money paid for 

 telephone and telegraph service is 

 charged to Telephone and Telegraph 

 Expense. We have come to the conclu- 

 sion that it is just as essential for a 

 business concern to have a savings ac- 

 count as it is for an individual, and for 

 this reason we make regular uniform 

 weekly deposits in a Savings account. 

 We find this a good way to prepare for 

 the retirement of a note or any other 

 obligation. 



Balance Sheet. 



Table No. 1 shows the form of our 

 balance sheet, with fictitious figures sup- 

 plied. It is highly possible that some 

 of these figures are out of proportion, but 

 it is not so much the figures that we are 

 concerned about. However, the exhibit 

 would not be so clear without the use of 

 some figures. 



Current Assets. 



Assets are arranged in order to their 

 availability or in the order in which 



