UNITED STATES DEPARTMENT OF AGRICULTURE 



jrJ9"^^u 



BULLETIN No. 381 



Contribution from Office of Markets and Rural Organization 

 CHARLES J. BRAND, Chief 



^•u^'^Ve^ 



Washington, D. C. 



September 29, 1916 



BUSINESS PRACTICE AND ACCOUNTS FOR 

 COOPERATIVE STORES. 



By J. A. Bexell, Dean, School of Commerce, Oregon Agricultwral College, Collaborator, 

 Office of Markets and Rural Organization; and W. H. Kerr, Investigator in Market 

 Business Practice, Office of Markets and Rural Organization, U. S. Department of 

 Agriculture. 



CONTENTS. 



Page. 



Introduction 1 



Corporate records 3 



Minutes 3 



Subscription agreement 5 



Certificate book 7 



Stock certificate register 7 



Dividend register 7 



Membership ledger 7 



Interest and dividend account 10 



Statements and reports 14 



Manager's report 15 



Inventory 15 



Auditor's report 16 



President's report 16 



Operating records 26 



Strictly cash business 26 



Cash receipts 26 



Use of the cash register 26 



Cash register ticket 26 



Bank deposits 27 



Cashbook 27 



Explanation of column captions. 27 



Cash payments 28 



Orders and remittances 29 



Cash payment book 29 



Explanation of column captions. 29 



Operating records — Continued. 



Strictly cash business— Continued. 

 Cash payment book — Continued. 



Balancing the cash book 30 



Reconciling the bank account ... 31 



Cash summary 31 



Coupon and scrip system 31 



Joiu-nal 33 



General ledger 36 



Explanation of general accounts . 36 



Trial balance 40 



Closing the ledger 40 



Both cash and credit business 41 



Accounts receivable 47 



Bills receivable 47 



Goods returned 47 



Produce 48 



Accounts payable 48 



Account file system 49 



Departmental cost accounts 50 



Auditing 50 



Audit of resources and liabilities 51 



Office equipment 53 



Summary 55 



Bibliography 56 



Index of records anct accounting forms 56 



INTRODUCTION. 



The purpose of this bulletin is to outline a simple and adequate 

 system of records for cooperative retail stores, and to point out such 

 fundamental business methods as must be observed to insure suc- 

 cess. It is not a treatise on the principles of bookkeeping, but merely 

 an outline of a special system adapted to a cooperative business. It 



Note.— This bulletin should be of interest to all cooperative stores and members of such stores. It should 

 be of interest to retail grocery and general merchandise stores throughout the country. 

 44371°— Bull. 381—16—1 



