10 BULLETIN 520, U. S. DEPARTMENT OF AGEICULTURE. 



The debit columns of this form arc designated as follows: 



Folio. 

 Cash. 

 Bank deposits. 



General ledger. I Grading. 



Accounts receivable. Weighing. 



Miscellaneous expenses. I Insurance. 



In the "cash" column are recorded all the receipts of cash as 

 they occur. The total is deposited when convenient and entered 

 in the "bank deposits" column in the exact amount of the deposits 

 made. At the end of the month the "bank deposits" column will 

 furnish an itemized statement of the deposits and will give a record 

 of the total receipts for the period. The deposits plus the cash 

 balance from the previous month, which should be entered at the 

 head of the "bank deposits" column, constitute the total debit to 

 cash for the month. The most satisfactory method is to require a 

 statement of account from the bank at the end of each month and 

 to reconcile the cash to that statement. 



When it is necessary to pay small items of expense in cash, a check 

 should be drawn to "petty cash" in order to .establish a fund out 

 of which such payments can be made. This amount should be 

 charged to "petty cash" account in the ledger. At the end of the 

 month the total amount of such expenditures should be credited to 

 "petty cash," and be charged to the proper expense accounts. At 

 the beginning of the next month the fund can be renewed by drawing 

 a check to "petty cash" for the amount of the previous month's 

 expenditures. 



All entries of general accounts not classified under separate head- 

 ings should be carried in the "general ledger" column and should 

 be posted to their respective accounts in the ledger from that colunm. 

 Charges to customers for services or material should be entered in 

 the "accounts receivable" column and be posted to the customers' 

 accounts in the ledger. 



Under "Miscellaneous expenses" should be entered all items not 

 otherwise classified. 



In order that the warehouse may know its position in regard to 

 weighing, grading, and insurance, these items are carried under 

 separate headings and the totals are posted to these accounts at the 

 end of each month. 



The credit columns are designated as follows: 



Folio. Accounts receivable. Storage. 



Check No. Weighing. Insurance. 



Bank withdrawals. Grading. Miscellaneous. 

 General ledger. 



