22 BULLETIN 985, TJ. S. DEPARTMENT OF AGRICULTURE. 



Accounts Receivable control (A4). 



Debit: 



1. With the total charged to individual 



accounts as shown by the balance 

 sheet at the time of opening the 

 books. 



2. With the monthly totals of the charge 



sales as shown by the debit gin- 

 ning ledger column in the cash 

 journal. 



Credit: 



1. With the monthly totals of collec- 



tions on account, as shown by the 

 credit ginning ledger column in 

 the cash-journal. 



2. With any other credits to customer's 



accounts, including the writing off 

 of uncollectible accounts. (See 

 Reserve for bad debts.) 



The debit balance of this account must equal the net total of the balances of cus- 

 tomer's accounts as shown by a summary of the ginning ledger. 



The postings to this account are the monthly totals of the ginning ledger columns 

 in the cash journal. 



Inventory (A5). 



Debit: 



Credit: 



1. With cost value of all salable mer- 



1. 



At the beginning of each fiscal period 



chandise and operating supplies on 





with the cost value of all salable 



hand as shown by the balance 





merchandise and operating sup- 



sheet at the time of opening the 





plies on hand . (Debit the various 



books. 





purchase accounts.) 



2. At the close of each fiscal period with 







the cost value of all salable mer- 







chandise and operating supplies 







on hand as per inventory . (Credit 







the various purchase accounts.) 







The balance of this account will represent the value of salable merchandise and 

 operating supplies on hand at the end of the previous fiscal period. (See discussion 

 of inventory on page 37.) 



B. FIXED ASSETS. 

 Land (Bl). 



Debit: 



1. With the cost of the land owned as 



shown by the balance sheet at the 

 time of opening the books. 



2. With any subsequent purchases of 



land. 



3. With the cost of any permanent 



improvement, such as sewers, 

 water, mains, etc. 



Credit: 

 1. With the cost of any land sold. 



If any land is sold at a price in excess of its cost, such excess should be credited to 

 surplus. 



