BUSINESS PEACTICE AND ACCOUNTS FOR COOPEEATIVE STOEES. 49 

 Account File System. 



Because of the extensive introduction of the duplicating and tripli- 

 cating sales slips into the retail business, various account files have 

 become very popular. They will be foimd entirely satisfactory only 

 if used as a part of the system of general accounts, just outHned, and 

 not as a substitute for it. 



Of course the account file is used for personal accounts only — for 

 customers and, sometimes, creditors. The triplicating sales slip is 

 recommended. One slip is given to the customer and two filed — one 

 in the register, and the third in a special checking file, after having 

 passed through the cash register. The essential difference between 

 this system and the ledger system just described lies in the fact that 

 the balance due is forwarded from slip to slip, the last one being 

 exposed, showing the balance due. Also credits of whatever nature 

 are entered on this same style of slip, deducted from the last balance, 

 and the resulting net balance forwarded as before. (See Form 22.) 



In order to prove the accuracy of the register, the total of the last 

 charge is fisted from the tripficate (in the cash register) and a jour- 

 nal entry made exactly as before (Form 19). Likewise, the pay- 

 ments are fisted and entered in the cash receipts, crediting the 

 customers in the proper column (Form 14). Credits of produce are 

 also fisted on a register and journafized. The only difference fies in 

 the fact that no posting to a customer's ledger is necessary, since 

 the account file constitutes the customer's ledger. 



When the controlfing entries are posted, the total of the balances 

 in the register will equal the net balance of the Accounts Receivable 

 in the General Ledger, if the work is correct. Care must be taken 

 not to allow the daily checking to lapse, because an error dating 

 back several days is extremely difficult to find. 



If the system is used also with the creditors' accounts, a special 

 sfip is used on which to forward the balances. A controlfing account 

 is kept in the General Ledger in the same manner as the customers' 

 controlfing accoimt, and a journal entry is made of the total as 

 often as desired. In this case, a special column would be neces- 

 sary in the Cash Payments book with the heading "Accounts Pay- 

 able," in which all payments to creditors would be entered. The 

 individual items would be posted to the debit of the creditors' 

 accounts, and the total posted to Accounts Payable at the end of 

 the year in the same manner as the totals of the other columns. 

 When this is done, the total balance in the register should equal the 

 net balance in the controlfing account. 



