A SYSTEM OF ACCOUNTING FOR COTTON GINNERIES. 15 



deduction for such foreign matter need be made, as the weight of the 

 bagging and ties placed on the bale usually will offset this loss. 

 Care should be taken to perform the calculations in the proper space 

 on the ginning ticket. This will be of great assistance in auditing 

 and will also be a valuable record in case disputes arise later. It is 

 also of great importance that every tag and ticket be recorded and 

 that memoranda be made of lost or destroyed tickets and tags. 

 Care should be taken to fill out every space and that every signature 

 required be properly signed. If the form is put up in triplicate, 

 two copies are perforated and are torn out, while the third remains 

 in the book for permanent record. 



Two courses are open to the grower — either to pay the ginning 

 charges in cash or to sell the seed to the ginner. When the cotton 

 seed is bought, the net pounds of seed are recorded, the price per 

 hundredweight, and the total value. From this the charges are 

 deducted and the balance is due the grower, which should be paid 

 by check. 



The practice is for the ginner to carry an account with the grower 

 until the end of the season or until the cotton is sold, when settle- 

 ment of the account is made. Occasionally a small lot of seed is 

 carried home by the grower, and this should be recorded. 



As stated in the introduction, trading should be entirely disasso- 

 ciated from the ginning operations, as otherwise it would be impos- 

 sible to establish a satisfactory basis for ginning costs. Where a 

 ginner buys seed cotton on his own account, he should charge this 

 cotton with the ginning, as explained on page 35, and the usual 

 record should be made of the ginning and baling. 



The distribution columns at the right of the gimiing ticket should 

 be totaled at the end of each page and the totals forwarded. These 

 totals furnish the facts for the summary of operations at the end of 

 the season. 



THE GINNING LEDGER. 



Once a week, or as often as occasion requires, the data recorded 

 in the ginning register are footed and posted into the ginning ledger 

 (Form 3). No specific instructions for posting are necessary, since 

 the arrangement of the columns in the register and ledger are identical. 

 The sheets in the ledger are arranged alphabetically, so that the 

 initial of the account should be noted as a posting mark in the L. F. 

 column of the register. Care must be taken to see that the total 

 charge in the register and the postings to the ledger are equal. 



THE FINANCIAL RECORDS. 



The cash receipt (Form 4), the cash journal (Form 5), and the 

 general ledger (Form 6) comprise the financial records. 



