BOOKKEEPING FOR GRAIN ELEVATORS. 



29 



the book inventories and the actual physical inventories of the various kinds of grain 

 and merchandise at the end of the year. Inasmuch as shrinkage and scale loss is 

 an expense to the elevator, it is desirable that the extent of such expense be definitely 

 known. 



By following this procedure each grain and merchandise account will show the 

 actual gross gain or loss arising from a full accounting of the total quantity of grain 

 and merchandise received, and the Loss and Gain account will show all items enteriii']!; 

 into the cost of operating the enterprise. Inasmuch as both leakage in transit and 

 shrinkage and scale loss are factors at least partially under managerial control, changes 

 in policy may result when the actual facts relative to these factors are ascertained. 



Express, Freight, and Drayage {M7). 



Debit: 



Credit: 



1. With payments of bills rendered. 



1. With tlie debit balance at the close 





of the fiscal period. (Debit Loss 





and Gain.) 



N. ADMINISTRATION EXPENSE. 



Telephone, Telegraph, and Postage (Nl). 



(See account No. M2.) 



Printing, Stationery, and Office Supplies {N2). 



Debit: 



1. With purchases of minor supplies. 



2. At the close of the period with the 



Consumption during the period 

 of printing and stationery. (Credit 

 Printing and Stationery Inven- 

 tory.) 



Credit: 



1. With the debit balance at the close 

 of the fiscal period. (Debit Loss 

 and Gain.) 



Interest (NS). 

 (To be used only by larger companies.) 



Debit: 



Credit: 



1. With the interest accrued during 



1. 



With the interest accrued during 



the period on notes payable. 





the period on notes receivable. 



(Credit Interest Accrued on Notes 





(Debit Accrued Interest on Notes 



Payable.) 





Receivable.) 



2. With discount on notes receivable 







discounted. 







This account is closed at the end of the fiscal period by a debit or credit, as the case 

 may be, to Loss and Gain. 



