BUSIISTESS PEACTICE AND ACCOUNTS FOR COOPEEATIVE STORES. 31 



RECONCILING THE BANK ACCOUNT. 



Usually the bank returns the canceled checks at the end of each 

 month with a statement of the balance. It should be the first duty 

 of the bookkeeper to arrange the checks numerically and reconcile 

 the bank balance with that shown by the cashbook. This is done 

 by the following formula: 



Store balance $742. 37 



Add outstanding checks 65. 40 



Bank balance 807.77 



Cash Summary. 



The cash summary is merely a recapitulation of the totals of the 

 receipts and payments. The same form is used and no change what- 

 ever is made in the classification. The cash statement (Form 7) is 

 the total of this summary (Form 18). 



Coupon and Scrip System. 



One of the most serious objections to strictly cash business is the 

 inconvenience to the customer in handling change. The percentage 

 of customers who carry a bank account and prefer to pay monthly 

 by check is growing year by year. The convenience of ordering by 

 telephone and having goods dehvered in the absence of the house- 

 keeper is recognized by all. To overcome these objections coupons 

 are often sold in convenient books of $5, $10, or $25. Many stores 

 find this system so valuable that they offer a small discount for such 

 advances. So long as the store has no surplus capital, such discount 

 should be more than offset by the trade discount obtained from 

 dealers for prompt payment. As the coupons are sold for cash only, 

 the sale is entered from the Daily Summary into the Receipts Book. 

 The total coupons sold, less the coupons returned, represents a 

 Habihty, and must be so entered in the Balance Sheet (16). It is 

 not necessary to provide the cash register with a separate key for 

 the coupons, because they should be counted in as cash in the daily 

 balance. Every coupon book should be nutobered .and a proper 

 receipt should be taken for every book issued. The books should be 

 issued in numerical sequence, and the auditor should require a strict 

 accounting of the books on hand at each audit. A typical book has 

 the following instructions on the cover: 



1. Under no circumstances will these coupons be received in payment for goodf 

 purchased prior to the sale of this book. 



2. The unused portion of this book may be redeemed at the face value of the returned 

 coupons, less 3 per cent, provided the book is presented within one year from date oi 

 sale indicated by punch mark in margin of cover. 



3. Detached coupons will not be redeemed nor accepted in payment for merchan- 

 dise. When the coupons have been exhausted, preserve this cover as a receipt foi 



