26 



BULLETIN 865, U. g. DEPARTMENT OF AGRICULTURE. 



This account would be used only by creameries operating on the cooperative plan, 

 when it would be shown on the Operating Statement as all other expenses. 



Should it happen that an error is made in figuring a patron's voucher, any balance 

 due him should bo immediately paid upon verification as to the accuracy of the 

 claim and the amount carried to the debit of this account. 



In case an overpayment has been made to a patron, he should lie induced, if possi- 

 ble, to reimburse the company immediately. Otherwise the amount will appear as 

 a deduction on his next voucher, which is undesirable. Such refunds will be a 

 credit to this account. 



The balance of this account should be carried to Butter Fat Purchases' account, 

 either as a debit or credit, as the case may be, before the Loss and Gain accoi:nt is 

 written up. 



Automobile Truck Operation (L 4). 



Debit: 

 1. With all expenses incurred for oil, 

 gasoline, rent, driver's 

 license fees, and cleaning. 



Credit: 



1. With the debit balance at the close 

 of the fiscal year. (Debit Loss 

 and Gain.) 



If the situation warrants, a separate labor account under Collection and Delivery 

 Expenses may be maintained, but in most cases this would be an unnecessary segre- 

 gation. The Automobile Truck Operation expense account should show the expense 

 of actual operation, exclusive of repairs. 



Repairs on Automobile Truck (L 5). 



Debit: 

 1. With the cost of all items of repairs 

 on automobile trucks during the 

 period. 



Credit: 



1. With the debit balance at the close 

 of the fiscal year. (Debit Loss 

 and Gain.) 



Considerable care must be exercised in determining what should be charged to 

 this account. These charges should include repairs of all sorts, but should not include 

 charges for replacement of entire unit. Additional equipment to a truck increasing 

 its valuation should be charged to Automobile Truck Inventory account. 



Depreciation on Automobile Trucks (L 6). 



Debit: 



Credit: 



1. At the close of the period, with pro- 



1. With the debit balance at close of 



portion of annual reserve set aside 



the fiscal year. (Debit Logs and 



to cover the estimated wear and 



Gain.) 



tear on automobile truck. 





HAULING EXPENSE. 



In some orgainzations this expense, or a part of it, is paid by the patrons. When 

 flu entire cost is so paid, the proper method of bookkeeping is described under 

 Accounts Payable Haulers on page 15. However, when any part of this cost is paid 

 by the creamery, an account captioned Hauling Expense should be opened under 

 the Raw Material account. All amounts paid to haulers would be charged to this 

 account, and all charges to producers would be credited to this account. The debit 

 balance would represent the expense to the creamery of collecting the raw material. 



