ACCOUlSrTS FOR LIVE-STOCK SHIPPING ASSOCIATIONS. 13 



sides of the cash, journal should at aU times be in balance, with the 

 exception that the debit side should exceed the credit by the exact 

 amount of the first entry of the month, which should be the amount 

 of cash in the bank, this entry being made at the head of the bank 

 deposits column. At the close of the last business day of the month 

 the bank book should be balanced, so that the manager will be able 

 to check up the correctness of his entries in respect to cash. If the 

 difference between the totals of the bank deposits column and the 

 bank withdrawals column of the cash journal is equal to the differ- 

 ence between the bank balance as shown in the passbook and the 

 outstanding checks, this will prove that the entries as made in the 

 cash journal correspond to the transactions with the bank, and the 

 two balances therefore are considered reconciled. 



POSTING OF THE LEDGER. 



In associations which have been doing business ovei a period of 

 time, it will be necessary before making postings to the ledger to set 

 up the accounts representing the assets and liabdities of the associa- 

 tions.^ These assets and liabihties will include such assets as cash 

 in the bank, equipment for doing business, notes receivable, accoiuits 

 receivable, inventory accounts, and such liabiHties as biUs payable 

 and capital stock outstanding. 



Since the cash journal is arranged with columns so that the several 

 commodities may be accounted for in the proper columns, the number 

 of necessary postings to the ledger is reduced. As the work progresses 

 during the month, aU the entries ui the accounts receivable and gen- 

 eral accounts columns, both debit and credit, should be made daily 

 to their respective accounts in the ledger. Such postings as are nec- 

 essary in respect to various commodities sold can be made at the 

 end of the month in total, posting to the ledger both the amounts in 

 pounds and the values of the commodities sold. In respect to pur- 

 chases of suppHes, the same procedure should be followed regarding 

 posting both pounds and price, so that the ledger account not only 

 will give the value and kind of goods on hand, but will serve also as 

 a perpetual inventory of such commodities. 



CONCLUSION. 



As has been the practice of the oflBice in relation to its other accoimt- 

 ing systems, improvements will be made in the system for live-stock 

 shipping associations described in this bulletin wherever it is shown 

 that such changes will improve its adaptability to the business. 



' For further discussion of opf;ningbfX)kssecHumphrey,JolinIl.,and Kerr, W.H.," Lumber Accounting 

 and Opening Books in Primary Grain Elevators," IT. 8. Department of Agriculture, Markets Document 

 No. 2, 1910. 



