BOOKKEEPING FOR GRAIN ELEVATORS. 41 



SUPPLY ACCOUNTS SETTLED WITH GRAIN. 



When a request is received from a patron to deduct the amount 

 which he may owe the company for suppHcs from the amount duo 

 him for grain sold, 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 ''for account receivable," in the full amount 

 deducted from the previous check. This check is then indorsed by 

 the patron and both checks are entered in the record of grain pur- 

 chases, the first check going to the patron and the second being 

 entered in the Cash Journal to the credit of the patron and 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. 



CONCLUSION. 



The foregoing pages describe the method of operating a system of 

 grain elevator accounting devised to answer the requirements of grain 

 elevators located at country points throughout the United States. 

 The adoption of a uniform system of accounting should be of benefit 

 both to the companies and to the men employed by them as managers, 

 but the simple keeping of the records is not sufficient. To obtain 

 benefits commensurable 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 fully 

 advised, not only as to the conditions of the business but as to the 

 economic advantage of the present method of doing business, it is 

 advisable that in every case careful attention should be paid to the 

 grain and merchandise reports and to ascertaining the cost of opera- 

 tion by use of the Cost Analysis. If the information thus obtained 

 is made available to the stockholders and other interested parties, and 

 they are thus assured that the business of the elevator is being 

 handled in a competent manner and that detailed information regard- 

 ing it can be furnished at any time, it will tend to strengthen the 

 financial position of the company with those who extend credit to 

 elevators during the season of crop movements. 



For the convenience of those interested in the sj^stem described in 

 this bulletin, and for those who desire to install the system, the 

 Bureau of Markets has provided printer's copy of the several forms 

 for free distribution. A list of firms by whom the forms are pub- 

 lished and carried in stock will be supplied on request. All elevators 



