COOPEEATIYE OKGAXIZATIOX BUSINESS METHODS. 17 



sufficient working capital. A very satisfactoiy way of accumulating 

 a surplus is to levy a special charge per unit on the commodities de- 

 livered by the members, this amount to be set aside as an addition to 

 the capital. 



PREPARATION OF ANNUAL STATEMENTS. 



The statements usually submitted by the treasurer to the members 

 at the annual meetings are the balance sheet, the profit and loss 

 statement, and the statement of expenses. These statements are for 

 the purpose of showing the members the condition of the business 

 at that time, the progress made during the jea.v, and the expenses 

 incurred. Therefore, they should be so prepared as to be readily 

 comprehensible to the rank and file of the membership unaccus- 

 tomed to reading such statements. 



THE BALANCE SHEET. 



The balance sheet (Form I) is a statement of the assets and lia- 

 bilities of a business at a particular tmie. It is made up of the 

 debit and credit balances remaining on the various accounts after 

 the books have been " closed." Accountants do not agree as to the 

 arrangement of the various items on the balance sheet, some start- 

 ing with the most liquid and working toward the most fixed ; others 

 reversing this order. Either method is good, but it should be followed 

 out on both sides so as to bring the most liquid assets opposite the 

 most liquid liabilities and continuing in such a way as to bring the 

 most fixed assets directly opposite the capital.^ 



Form I. — The balance sheet. 



THE YORKVILLE PRODUCE EXCHANGE. 



Balance Sheet as of Dec. 31, 1914. 



as-sets. i liabilities. 



Ca.shonhand tSO.OO I Accounts payable S250.00 



Casbiubank 1:^!!^ ^ sgo.OO i BUispayable 2,000.00 



Bills receivable 'SJ,6.00 \ Capital and surplus: 



Accounts receivable 2,000. m Capital stock s, 190. 00 



LessreserveforbaddebUs. 00.00 ' Qnniina 



1,940.00 i tourpus— 



Merchandise inventory a.s per schedule. . 3,000.00 \ Balance as of I )cc. M 1 , lOl.i . $.100. 00 



Furniture and fi.xturcs tHOO. 00 Net profit for ynar njfi. 00 



l/Css reserve for deprccia- ; .S^O. qq 



lion /fi.OO 



700. 00 



buildings 3,000.00 



Ixjs-S reserve for deprecia- 

 tion IM.OO 



2,Hr,t).()0 



Land 1,000.00 



ll,eH0.00 , 11,1180.00 



' Another claKH of ItemH which Mhould appear on the balance shoot an; " defcncd 



I harjjeH," reproHenUn^' expenscH paid hut not charf^eable af,'al"t the period under eon- 



ideration. Ah, for exarnph-, the slationory, oflicc HuppllcH, stamps, etc., on hand will l)0 



(d during the n<-xt fiwiral prTiod iiiid llificforc! arc <-liarf,'('abli' aKiiiiist (h(> prolKs of 



;liat pfrlod. Other ItemH Huch as " Inlfrcst paid in advanrc," " Insuranc.' prcmlum.s 



I)rcpuhJ," " rent paid In advance," etc., Hliould all bf taken into consideration. 



