14 BULLETIN 985, U. S. DEPARTMENT OF AGRICULTURE. 



THE GENERAL LEDGER. 



The form of general ledger sheet is usually kept in stock by station- 

 ers. The posting is done from the cash journal into the general 

 ledger once a month or as often as is desired. No individual items 

 are posted into the general ledger, except those found in the general 

 ledger columns of the cash journal. The totals of the special columns 

 are posted direct from the cash journal to the proper account in the 

 ledger. The debit totals are posted to the debit side and the credit 

 totals to the credit side of the account. Since the debits are equal to 

 the credits in the cash journal, and since no posting is done from any 

 other book, the two sides of the ledger must be equal and the trial 

 balance should be easy to obtain at any time. The accounts found 

 in the ledger are charted and described on pages 21 to 35. 



HOW THE SYSTEM WORKS. 



Sample entry of actual transactions showing the operation of the 

 system will be found on the forms illustrated at the end of this bul- 

 letin. In studying the system or in actually using it, these sample 

 entries should be referred to until it is thoroughly understood just 

 how the entry should be made. 



THE GINNING RECORDS. 



The ginning records are the bale tag (Form 1), the ginning ticket 

 and register (Form 2), and the ginning ledger (Form 3). The sole 

 function of the bale tag is to identify the bale as it passes from the 

 producer to the consumer. The ginning ticket and register is the 

 original detailed and serial record of the bale and all the information 

 relating to the ginning operations, while the ginning ledger is the 

 book of personal accounts of patrons. The debit side of the ginning 

 ledger and the total ginning charges in the register should be equal 

 when the posting is completed. The net total of the balances in the 

 ginning ledger should agree with the balance of the accounts receiv- 

 able account in the general ledger. 



RECEIVING THE COTTON. 



As the grower drives on the scale, the weigher takes the next 

 numbered bale tag (Form 1) and on a ginning ticket (Form 2), of the 

 same number as the tag, he records the gross weight; then the cotton 

 is drawn into the gin, after which the tare or the weight of the wagon 

 and driver is deducted; the difference is the net weight of the seed 

 cotton. The weight of the bale multiplied by the rate gives the 

 charge for ginning. Adding the value of the bagging and ties gives 

 the total charges if the charge for bagging and ties is not included in 

 the ginning charge. By subtracting the weight of the bale from the 

 net weight of the seed cotton the weight of the cotton seed from the 

 bale is found. Except when the seed cotton is of a very low grade, 

 is unusually dirty, or contains hulls and bolls in large quantities, no 



