COOPEEATIVE OEGAXIZATIOX BUSIXE3S METHODS. 15 



zation. "Where the organization is formed as a stociv company pure 

 and simple, the dividend is apportioned to each stocldiolder on the 

 basis of the amount of stock hekl b};- each. In strictly cooperative 

 organizations a dividend is generally paid to stockholders at a rate 

 to provide reasonable interest on the investment. The balance of 

 the profits are prorated back to the members in proportion to the 

 total amount of business done by each during the season. The 

 amount paid as a fixed dividend on stock naturally will vary with 

 the interest rates of different localities. In some cooperative organi- 

 zations no dividend on stock is paid, but the entire profit is divided 

 pro rata among the members, according to the amount of business 

 done by each with the organization. 



To be ^alid. dividends must be declared out of the organization 

 profits — that is. out of the balance remaining after all current ex- 

 penses of operating are paid, and fixed charges, which include 

 amounts set aside as surplus and for depreciation, are provided for. 

 Power to declare dividends is vested in the directors. 



The real purpose of a cooperative organization for marketing 

 farm products should be to obtain the highest possible price for 

 products delivered to the organization, and to furnish supplies to 

 members at a charge as near cost as possible, there being collected 

 onl}' a sufficient charge above the actual working cost to provide for 

 an increase in working capital. If this is done, dividends to mem- 

 bers will be cut to a minimum. 



Some organizations return to the members the full amount re- 

 ceived for the product, less actual expenses, withholding only a 

 small amount for emergencies, this amount going into a fund to 

 cover an}' possible losses during the year. The balance of this fund 

 is rebated to the membei\s at the end of the year, pro rata to the 

 amount of business done. 



The be.st plan is to allow invested capital a reasonable amount of 

 interest, set up a surplus fimd to increase the working capital if 

 desired, but abo\'c these charges to return to the members, at the time 

 statements are made, the total amount received for their product less 

 I'ctual expenses and the amount set aside for surplus. 



TRIAL BALANCE BOOK. 



In ordei' to preserve the trial balance some bookkeepers prefer to 

 open up a trial balance book. This book is ruled with a folio column, 

 name coluMin, aiifl numerous money columns, usually 12, accommo- 



iting trial balance's on a double page. In this way it is necessary 



write the headings of the arxrounts but twice a year. 



The trial balance book can also be made in another form, with 

 llternate l(;ng and short sheets, th<! long sheets extending beyond the 

 margin yf tlic siiort sheets the widtii of the name colmnn. The 



