20 BULLETIN 590, U. S. DEPARTMENT OF AGRICULTURE. 
caption “cash’’ is opened in the general ledger and the balance of 
the cash on hand carried to it at the end of the month. 
Bank.—The excess of the total of the bank deposits column in the 
cash journal, representing the amount of the deposits plus the bal- 
ance carried forward from the previous month, over the total of the 
bank withdrawals columns, representing the amounts disbursed, 
demonstrates the available amount of cash in the’ bank at the end 
of the month. This balance is posted to the account under the 
caption of the name of the bank. If it is desired to have the bank 
account in the ledger show the amount of receipts and disbursements 
of cash, the totals of the bank deposits and bank withdrawals can 
be posted to the account at the end of each month instead of posting 
the balance. 
Supply accounts.—It is usually desirable to ascertain the gross 
profits on the various lines of supplies handled. ‘To open an account 
with each commodity, however, would result in a great variety of 
segregation and supplies are therefore grouped, as a rule, and accounts 
opened under the following captions: Spray; boxes; paper; nails; 
labels and labeling; miscellaneous. 
These accounts are debited with the cost of the commodity and the 
freight charges. They are credited with the total sales. They are 
also debited with the amount of goods returned by customers and 
credited with the cost of goods returned by the organization. 
The label account also includes cost of paste and the labor in 
affixing labels to the boxes. The labels are usually bought and 
delivered in one lot, making but one charge to the account for that 
item. Hence it does not appear necessary to open another account 
for the actual work of labeling. | 
Merchandise.—Besides the orchard supplies, such as boxes, paper, 
nails, spray materials, ladders, etc., which are handled by practically 
all fruit-shipping organizations, some also deal in grain, hay, feed, 
flour, etc. In order to differentiate between the growers’ supplies 
and these commodities, an account under the caption ‘ Merchan- 
dise’”’ is opened to record their purchase and sale. 
Bills receivable and bills payable accounts.—The bills receivable 
account shows the amount due on signed obligations and includes 
-membership notes and drafts which have been accepted. The bills 
payable account shows the amount owing by the organization on 
signed obligations. 
Controlling accounts for the mercantile and fruit ledgers.—The con- 
trolling or summary accounts will disclose in condensed form through 
posting of monthly totals the transactions that are posted in detail 
from day to day in either of these ledgers. At the beginning of the 
season the mercantile ledger controlling account is debited with the 
total of all the balances appearing on the mercantile ledger, as shown 
