26 BULLETIi^ 811, U. S. DEPARTMENT OF AGRICULTURE. 



Flour {Kl). 



Debit: 



Credit: 



1. 



With the inventory carried over 



1. 



With the monthly sales as shown by 





from the previous fiscal period as 





the total of the flour sales column 





, shown by the Inventory account, 





in the Cash Journal. 





at the time of opening the books 



2. 



With goods purchased and subse- 





and at the beginning of each fiscal 





quently returned for credit. (De- 





period. 





bit Accounts Payable.) 



2. 



With the cost of goods purchased. 



3. 



With the value of the inventory on 



3. 



With freight on purchased goods, 





hand at the end of the fiscal 





extra labor for unloading, and 





period. " (Debit Inventory ac- 





other direct charges. 





count. ) 



4. 



With goods which have been record- 



4. 



With any shortage in the physical 





ed as sold but which have subse- 





inventory at the end of the fiscal 





quently been returned. 





period. (Debit Shrinkage and 



5. 



With the credit balance at the end 





Scale Loss.) 





of the fiscal period. (Credit Loss 



5. 



With any debit balance at the end 





and Gain.) 





of the fiscal period. (Debit Loss 









and Gain.) 



A separate account should be opened for each kind of grain and principal line of 

 merchandise handled. At the end of the fiscal period, by crediting these accounts 

 with the inventories and shrinkage and scale loss, the gross profit or loss will be deter- 

 mined. Where the total credits exceed the total debits, a gross profit is shown and the 

 account is closed by balancing it and crediting Loss and Gain, Where a loss is shown 

 by a net debit the reverse entry should be made. 



Feed{K2). 

 (See account No. Kl.) 



Coal (KS). 

 (See account No. Kl). 



L, OTHER INCOME ACCOUNTS. 



Dockage sales (Ll). 



Debit: 



Credit: 



1. With the credit balance at the 



1. With the amounts received from 



close of the fiscal period. (Credit 



sales of dockage. 



Loss and Gain.) 





Grinding {L2). 



Debit: 



Credit: 



1. With the credit balance at the close 



1. With the amounts received for 



of the fiscal period. (Credit Loss 



grinding. 



and Gain.) 





