8 BULLETIN 236, U. S. DEPARTMENT OF AGRICULTURE. 



CASH RECEIPT. 



All receipts of money other than checks are recorded upon a cash 

 receipt (Form No. 14; see p. 29). It is quite essential that such a 

 receipt be used, as the practice of receiving scrip or coin without 

 making a record of the transaction at the time of receipt often leads 

 to discrepancies which are difficult to account for later. 



COST ANALYSIS. 



A feature of this system and one upon which considerable emphasis 

 should be laid is a cost analysis (Form No. 15; see p. 30), by 

 which the relative amounts of grain handled and the actual and 

 relative cost per bushel are determined. Upon this form a determina- 

 tion of the percentage of cost in handling merchandise is also worked 

 out. The value of knowing the ratio of costs in the operation of a 

 business is a well-established essential in many commercial enter- 

 prises, and it is no less important to the successful operation of grain 

 elevators. 



In conjunction with this system any double-entry, loose-leaf ledger 

 accommodating general accounts and accounts receivable may be 

 used. To be assured of the correctness of entries, it is advisable that 

 a trial balance be taken from the ledger at the end of each month. 1 



INSTRUCTIONS FOR OPERATING THE SYSTEM. 



RECORD OF GRAIN RECEIPTS. 



The record of grain receipts (Form No. 2, facing p. 20) is a consecu- 

 tive record of the receipts of grain as shown on the storage tickets. 

 Having entered the storage tickets consecutively for the period of a 

 month, distributing the grain under the proper columns and record- 

 ing it under gross dockage and net, in bushels and pounds, we may 

 at the end of the month total this form to arrive at the total grain 

 receipts for the period. The totals of the record of grain receipts are 

 then carried to the grain report opposite the words "receipts this 

 period." As the business progresses from month to month, each 

 month's total should be kept separate; and, at the same time, a total 

 should be drawn down, including the current month and the previous 

 months of the current year. This total is also carried to the gram 

 report opposite the words "gross receipts." Under this system all 

 grain is considered as theoretically stored regardless of whether 

 it is purchased at the time of delivery or actually held in storage. 

 This method is followed because it insures the proper accounting for 

 every bushel of grain which comes into the elevator. 



i See U. S. Department of Agrirulturo Bulletin No. 178, "Cooperative Organization Business M"thods," 

 for further explanation of the value of trial balances. 



