BUSINESS PRACTICE AND ACCOUNTS FOR COOPERATIVE STORES, 41 



journal with suitable explanations, and should he approved hy the 

 manager before they are i^osted. (See page 33.) In this way the auditor 

 will know at a glance just what has been entered in the ledger, and 

 the taking of a trial balance will be greatly facihtated. 



B.— BOTH CASH AND CREDIT BUSINESS. 



A system of accounts which contains a complete analysis of a cash 

 business is given in the preceding pages. But, unfortunately, few 

 stores are able to confine themselves to this simple method of doing 

 business. It is therefore necessary to outline the additional records 

 required where credit is extended to customers, and where it is im- 

 practicable to discount all biUs. It should be emphasized that all the 

 preceding records are necessary and that the following are merely 

 additional credit records. They are (1) accounts with customers, 

 kept either (a) in a separate ledger or (b) in an account file; and (2) 

 accounts with creditors, kept Hkewise in a separate ledger or file. 

 Four additional accounts are kept in the general ledger, viz: A con- 

 trolling, or summary, account of Accounts Receivable; and another 

 with Accounts Payable; sometimes settlements will be made tem- 

 porarily by notes, and occasionally money will be borrowed. Hence 

 accounts with Bills Receivable and Bills Payable must be kept. The 

 method of keeping these accounts will be discussed in the above order. 



