UNITED STATES DEPARTMENT OF AGRICULTURE 





Contribution from the Bureau of Markets 

 GEORGE LIVINGSTON, Chief 



Washington, D. C. 



V 



August 16, 1920 



A CLASSIFICATION OF LEDGER ACCOUNTS FOR 



By George O. Knapp and Burton B. Mason, Assistants in Market Business Practice, 

 and A. V. Swarthout, Investigator in Market Business Practice. 



CONTENTS. 



Tagc. 



Introduction 1 



Chart of Ledger accounts 4 



Assets 5 



Liabilities, Reserves, and Net worth 12 



Income accounts 23 



Expense accounts 24 



Tage. 



Trial Balance 31 



Closing the Books 31 



Balance Sheet 33 



Income and Expense Statement 35 



Installation of Additional E quipment 3G 



The Nature of Bookkeeping 38 



INTRODUCTION. 



In presenting this "Classification of Ledger Accounts for Cream- 

 eries" it is the aim of the Bureau of Markets to emphasize the impor- 

 tance of the use of a definite and logical classification of accounts for 

 keeping the financial records of any business and to describe in detail 

 a classification which can be used advantageously by creameries. 

 The use of such a classification is not only a great aid to the book- 

 keeper in the performance of routine duties, but its consistent use 

 also insures a uniform method of presenting the financial information 

 from year to year regardless of changes in the personnel. The use 

 of these uniform methods by an industry as a whole makes possible 

 the exchange of data regarding business operations, which is of 

 untold value as a guide to efficient operation. 



It is felt that the consistent use of the classification described herein 

 will be of great benefit to the entire creamery industry. The explan- 

 atory paragraphs will be found helpful in deciding questions arising 

 from a new or unusual transaction, the necessary entries for which may 

 be unknown to the bookkeeper. 



In order to open the Ledger accounts for a set of double-entry 

 books, it is necessary to take a physical inventory of all assets and to 

 take into consideration all liabilities of the concern. These items 



'—20— Bull. 865 1 



