GOOPEEATIVE ORGANIZATIOIv BUSINESvS METHODS, S 



DOI'BIJE VEBSUS SINCil^ J^KTRY. 



For i-ecords of ii cooperative organization the double-entry system 

 is the only one worthy of consideration. Accounting for any business 

 based on single entry should be discouraged. The double-entr}- sys- 

 tem is the only one affording a complete check. 



" Single entry." as one well-laio"\vn authority says, " is the record- 

 ing of business transactions without regard to scientific principles. 

 The term is rightly api^lied to any method of recording business 

 transactions other than by the double-entry method. It is unscien- 

 tific because it is incomplete and tiierefore can not reflect the true 

 condition of affairs or the results fi-om operations." ^ 



Double entry is the scientific method and provides a complete 

 record of business transactions in such a manner as to show the 

 effects of such transactions upon the assets, liabilities, capital, sur- 

 plus, and revenue, and also to show the expenses of the business. 



The equalization of debit and credit in every transaction, which 

 is secured by all double-entry records, guarantees the mathematical 

 accuracy which is a most important feature. 



BOOKKEEPING POSSIBLE WITH FEW BOOKS. 



Oijly two books are absolutely necessary for a complete and sys- 

 tematic record of the financial transactions of a business, the Journal 

 and the ledger. The journal presents the record of business trans- 

 actions in chronological order, while the ledger shows the same 

 classified as to the respective accounts. The great number of books 

 now used as accounting records are but forms of these two books, 

 and the principles of double-entry bookkeeping apply in both cases. 



REQUIJREMENTS OP A SYSTEM FOR A COOPERATIVE ORGANIZATION. 



The first study of a manager should be of the business contem- 

 ]>lated and of the best methods for carrying out the objects of the 

 organization. Then a study should be made of the best method of 

 recording the business transactions pl•operl3^ After such a stiid^', a 

 complete business system should be worked out. 



A coopei-ative orgaidzation acts as the agent of the grower in the 

 luai'keting of his product, and a system foi- such an organization 

 must not only contain the usual accounting records showing th« 

 assets and liabilities, i)rofits and losses, and the receii)ts and dis- 

 bui-scments of cash, but it must sliow a clear recoi-d of cacji gi-ower\s 

 -liipments from the time of delivery until payment luis ix'cn made. 

 The system must be cai)able of taking ciire of the maximuui \(»lum<? 

 of business during the licight ol' the shipping s<'asoM atid pi'ovide 



» Bentloy, Ilnrrjr C. The Science of Accounte. New Voi'k, Rmiald Press. See p. 17. 



