BrSIXESS PEACTICE AXD ACCOUXTS FOE COOPEEATITE 5T0EES. 37 



3. Accounts receivable. — TMs account is used as a controlling 

 account if a credit business is done. It shows a debit balance, if any, 

 ■which equals the amounts due from customers as shown under the 

 several accounts in the customers' ledger, or in the account file. It 

 should be watched very closely, and under no circumstances should 

 the manager allow any deviation from an exact balance between that 

 account and the special accounts in the file. 



4. Reserve for had debts. — A close check should be had upon the 

 losses due to credit, and a definite rate estabhshed. When this is 

 found, the amount should be deducted from the net profit, and 

 credited to this account. Should this rate be found to be too large, 

 the rate should be decreased : if too small, the rate should be increased 

 from time to time. Credits to this account are ofifset by corresponding 

 debits to the Loss and Gain account. Sometimes it is well to charge 

 the enthe balance of any account to Loss and Gain, and then if an 

 amoiuit is collected enter it as a gain. 



5. Bills receivahle. — This account shows a debit balance, if any, 

 and represents signed obligations due the business, including notes, 

 mortgages, drafts, and other negotiable papers. This account is used 

 only where a credit business is done. 



6. Stock notes receivahle. — This account shows a debit balance, if 

 any, and represents the amount of stock notes due the business. The 

 balance should be kept as low as possible, and care be taken to collect 

 interest on every note. 



10. Furniture and fixtures. — This account represents the inventory 

 value of the furniture and fixtures at the beginning of the period, 

 together with all additions,. but not renewals and repairs. Nothing 

 intended for sale should be included in this account. 



14. BiRs payaMe. — This account shows a credit balance, rep- 

 resenting the amount of signed obligations due others at the end of 

 the period. 



16. Coupons outstanding. — This account shows a credit balance and 

 represents the amount of coupons outstanding, or the difference 

 between the amount sold and redeemed. Only one entry a year need 

 be made in this account, at the end of the period. 



17. Capital stocTc. — This account shows a credit balance, and rep- 

 resents the amount of stock outstanding. It is the controlling 

 account of the Membership Ledger, and the balance must equal the 

 amount of cash received for stock and stock notes, together with the 

 stock notes on hand. 



18. Surplus.-^This account shows a credit balance and represents 

 the undivided profits of a concern. The net gain at the end of the 

 year is entered in this account. 



21. Dividends paid. — When trade dividends are declared by the 

 directors a journal entry is made, debiting Surplus, and crediting 



