12 ' BULLETIN 403, U. S. DEPARTMENT OF AGEICULTUEE. 

 ENTERING ACCOUNTS ON THE CASH JOURNAL. 



Upon receipt of a check accompanying an account sales from the 

 market, the amount of the check should be entered in the cash col- 

 umn in the cash journal to the debit of cash and credited to Hve-stock 

 account in the general accounts column. The check covering such 

 a shipment, together with other cash receipts for the period since the 

 last bank deposit (all of which should be entered in the cash column) , 

 should then be deposited, and an entry for the amount of the deposit 

 should be transferred to the bank deposits column. Further entries 

 in the cash colunm will not be added to entries made previous to this 

 deposit, since the cash column serves merely as a memorandum of 

 the amount of receipts, and the various additions from day to day 

 are transferred to the bank deposits column as the deposits are made. 

 After having prorated the returns on the shipment on the members' 

 account sales, the association checks to the members should be 

 entered in consecutive order, givmg the name of each patron with the 

 number of the check. The amount of each check is entered in the 

 bank withdrawals colmnn and the total payments charged to the 

 live-stock account in the general accounts column. 



Journal entries covering home expenses and deductions relative 

 to the shipment can then be entered. These would include such 

 items as manager's commission and incidental supplies and would 

 be credited to these respective accounts and charged to live stock. 

 The inclusion of these items, together with the checks paid to mem- 

 bers, should constitute the total charges to the live-stock account. 

 When a check is issued to the manager for his services, the amount 

 should be charged to the manager's commission account, showing 

 the account balanced for a particular shipment. Such items as 

 stationery, stamps, lumber for partitions, etc., when purchased can 

 be charged to incidental supplies and credited off as used in the man- 

 ner cited above. The rate charged in the proration of these materials 

 should be such as to credit them off the books at their cost value. 



In accounting for sales of supplies, the several columns should be 

 headed according to requirements. All entries of sales may then be 

 distributed under the appropriate headings, showing the pounds and 

 amount of each sale. If the supphes are sold on account, the amoimt 

 of sales should be charged in the accounts receivable column opposite 

 the customer's name in the items column. The number of the sales 

 ticket should in each case be entered in the sales ticket column. 

 Cash sales should be credited to the proper commodity, as in the case 

 of sales on account, a corresponding amount being entered to the 

 debit of cash in the cash column. As the entries progress and the 

 pages of the cash journal are fiUed, the various columns should, be 

 added and the totals carried forward to the next page. The two 



