A SYSTEM OF ACCOUNTING FOR COTTON GINNERIES. 



13 



recorded. The form is put up in duplicate, one going to the payer 

 and the other being retained in the bound book; the receipts are 

 numbered consecutively, and every number must be properly re- 

 corded. They should be entered in the cash journal. This form is 

 not absolutely essential, but it will be found that its use very often 

 saves confusion and additional work. 



THE CASH JOURNAL— FORM 5.1 



The cash journal (Form 5) is a combination of the cash book and 

 the journal. The incorporation of these two books into one form 

 and the columnal development of the form tend to facilitate the 

 classification of entries and to reduce the posting to the ledger. No 

 special forms are provided in the system for the recording of pur- 

 chases and sales, but the cash journal is used for the recording of 

 these items. 



Effort has been made to reduce the size of this form by limiting 

 the number of special columns to those having sufficient items each 

 month to warrant economy in their use. A book of moderate pro- 

 portions will be found much more convenient to handle and to oper- 

 ate than one containing a large number of columns, if the needs of 

 the business are not such as to necessitate the additional columns. 



The captions of the columns of the cash journal are as follows: 



Debit side: Ledger folio (L F) ; general ledger; ginning ledger (ac- 

 counts receivable); receipt number; cash received; bank deposits; 

 notes payable; bagging and ties purchased; cottonseed purchases; 

 seed-cotton purchases; blank; pay-roll account; repairs; power ex- 

 pense; blank; insurance; rent and taxes; office supplies; blank. 



Credit side (reading from left to right): Date; name; ledger folio; 

 general ledger; ginning ledger (accounts receivable), cash payments; 

 check number; bank withdrawals, notes payable; bagging and ties 

 sales; cottonseed sales; cotton sales; custom ginning income; gin- 

 ning purchased seed-cotton; three blank columns. 



JOURNALIZING. 



As often as is convenient, the results recorded in the ginning 

 register (Form 2) are entered into the cash journal after the manner 

 illustrated below. This is one of the most important features of the 

 work, and should be very carefully performed. 



Ginning 

 ledger. 



Cotton 



seed 

 bought. 



Cash re- 

 ceipts. 



Oct. 31, 1919. 



Ginning. 



B. and T. 



Cottonseed bought. 

 Accounts receivable. 



Custom ginning income 



Bagging and ties sales 



Totals from the ginning register. 



50.00 



See folded sheet facing page 16. 



