ACCOUNTING FOR FRUIT SHIPPING ORGANIZATIONS. 91 
by the trial balance. The account is currently debited with the total 
of the column headed ‘Mercantile ledger”’ on the left-hand side of 
the cash journal and is credited with the total of the “Mercantile 
ledger’? column on the right-hand side of the cash journal. The 
resulting balance will be the total of the balances appearing in the 
mercantile ledger. The fruit-ledger controlling account is operated 
in like manner. 
Accounts payable.—The comparatively small number of creditors’ 
accounts warrants the opening of an individual account with each. 
The credit balance appearing on any one of these accounts measures 
the amount due that particular creditor. 
Fruit sales.—Instead of opening one account under the caption 
“Fruit account,’’ to which are credited the receipts from the sales of 
fruit and to which are debited the gross returns made to growers, 
two accounts are opened under the captions “ Fruit sales’ and “ Fruit 
returns.” 
The fruit sales account is credited with the amount of the receipts 
from the sales of fruit and is debited with all allowances made after 
the payment has been received. The credit balance appearing on 
this account is the net amount of money received from the sale of 
fruit. It is practically the controlling account for the distribution 
to the various pools. 
Fruit returns.—The fruit-returns account is debited with the gross 
amount of returns made to the growers. The debit balance appearing 
on this account represents the total amount paid to growers, and 
should equal the credit balance appearing on the fruit-sales account. 
~ Overage and underage account.—In closing down the pools on fruit, 
it is usually the case that there remains a small balance which can not 
be apportioned over the number of boxes at even cents or mills. In 
order to clear the fruit sales account of these unapportioned balances, 
they are credited to overage and underage account. Conversely, 
other pools may lack but the equivalent of a fraction of a cent per box 
of paying out. The accumulations in this account are then used to 
supply the deficiency. 
Building fund accumulations.—The financing of the construction 
of warehouses and packing houses, the purchase of the land, and the 
construction of the spur track is usually accomplished by means of a 
loan. This indebtedness is liquidated, over a period of 3 to 5 years by 
deductions at a given rate of 3 to 6 cents per box on the fruit handled 
for the growers. The credit balance appearing on this account is the 
amount of the accumulated deductions. As fast as the building loan 
is paid off, shares of stock or other evidences of the property interests 
of growers in the property of the association may be issued. 
