I 



COOPEEATIVE OEGAXIZATIOIS^ BUSi::^ESS METHODS. H 



should be retained and filed in numerical order so as to afford com- 

 parison Trith their corresponding- entries in the cashbook or check 

 register. 



As checks are frequently lost, making- it necessary to issue dupli- 

 cates, it is well to protect the organization against loss, as there is the 

 possibility of both original and duplicate checks being cashed. The 

 payee, therefore, should be required to sign a bond of indemnity for 

 twice the amount of the check. 



At the end of each month a reconciliation should be made between 

 the cashbook or check register and the bank pass-book balances. 

 As, from the very nature of the business, many checks are liable to 

 be outstanding at least at the end of months during which heavy 

 payments are made, a permanent record of these reconciliations will 

 be found of great assistance, not only to the auditor but to the book- 

 keeper as well. This reconciliation can be made with very little 

 additional work. When checks are retui-ned from the bank they are 

 sorted out numerically and checked off on the stub of the check 

 boolv or check register, preferably with a small red-ink check mark. 

 An adding-machine list is then made of all unchecked amounts, 

 giving a list of outstanding checks. Notation is then made on cash 

 book as follows: 



Riiliuu-e per pass book .$2. 498; .?0 



J.oss ()/s c-hecks 1.40X. 00 



Bfiiauce as shown on cashbook' l.OrK). .'jO 



All adjustments on account of collection charges or interest credits, 

 etc.. should also be shown. The numbers of the checks are then 

 in.seited opposite the resjoective amounts on the adding machine list, 

 and this list is filed with the last check drawn for the month. When 

 reconciliation is made for the following month, the returned checks 

 are fii-st checked against the outstanding list of the ])rc\'ious numth, 

 and all unchecked items on this list are then included in the new 

 outstanding list. This obviates the necessity of turning back each 

 time to find tiu' unchecked items on the check booJc. 



All checks and receipts, sales slips, vouchers, etc., shorild be num- 

 bered with a numbering machine. Any that are spoiled should be 

 marked \oi(l and left in the book. 



A i-egiilar system should Ije used for the acknowledgment of all- 

 cash .sales or mi.scellaneous cash item.s received. A receipt book with 

 <-arl>on, all receipts heing numbered in dujdicate, h-as nuiny advan- 

 tages over the r('(ei|)t book with stub. 'I'he carbon copy remaining 

 for oflice files. Ijeing an exa(.*t duplicate of the original, allows no 

 chiiiU'C for error, as may O'-cur in rewriting Hu> amount on a receipt 

 stub. 13y a systen) of niuiibering, all receipts can be accounted for. 



