ACCOUNTS FOE PRIMARY GRAIN ELEVATORS. 19 



UPPLY ACCOUNTS SETTLED WITH GRAIN. 



When requests are received from patrons to deduct from the 

 amount due for grain sold the amount which they may owe the com- 

 pany for supphes purchased, two grain checks should be issued. The 

 first check should contain the total number of bushels and kind of 

 grain being purchased, together with the balance due the patron 

 after deducting the amount of his account from the full value of the 

 grain. 



A second check should then be made without reference to bushels 

 of grain, and marked 'Tor a/c receivable," in the full amount de- 

 ducted from the previous check. This check is then indorsed over to 

 the elevator by the patron and both checks are entered in the record 

 of grain purchases, the first check going to the patron and the second 

 being deposited to the account of the elevator as cash received. By 

 this means both sides of the transaction have been carried out through 

 the only proper medium of settling accounts, which is cash. 



For the convenience of those interested in the system described 

 in this bulletin and for those who desire to have the system printed, 

 the Office of Markets and Rural Organization has provided printer's 

 copy of the several forms for free distribution. 



All elevators installing the system of accounts may refer to this 

 office any questions regarding its installation or operation. 



A sectional post transfer binder has been found convenient and 

 adequate for binding the accounting forms. The standard size is, 

 length over all, 15J inches, width lOJ inches, posts five-sixteenth inch 

 in diameter and 7 inches from center to center. 



CONCLUSION. 



The foregoing pages outhne very briefiy certain information regard- 

 ing operating grain elevators, and in particular describe the methods 

 used in operating a system of grain-elevator accounting devised to 

 accommodate the various requirements in primary elevators through- 

 out the United States. The adoption of a uniform system of account- 

 ing for primary elevators should be of benefit both to the companies 

 and to the men employed by them as managers, but the simple keep- 

 ing of the records is not sufficient. To obtain benefits commensurate 

 with the opportunities open in this field the manager and directors of 

 the elevators possessing such an accounting system should make use 

 of all the information which it is able to furnish. In order that the 

 management of the elevator may be fuUy advised, not only as to the 

 condition of the business, but as to the economic advantage of the 

 method of doing business which is being pursued, it is advisable that 

 in every case proper attention should be paid to ascertaining the 

 costs as provided for in the "cost analysis" included with this sys- 



