ACCOUNTING BECORDS FOB COUNTRY CREAMERIES. 13 



CASH JOURNAL. 



The cash journal is designed to facilitate the handling of cash and 

 journal entries. No posting should be made to the ledger other 

 than from entries made on this form. By following this rule the 

 liability of error in posting will he greatly reduced and an explanation 

 of all. ledger entries will be obtainable without the extra labor of 

 entering such details in the ledger. The form is so arranged that 

 all debits are entered to the left and all credits to the right of the 

 "Items" column. Because of this arrangement the sum of the totals 

 of entries in columns on the one side should equal that on the other, 

 except that in entering the cash balance at the head of the "Bank 

 deposits" column as the first entry of the month the debit will exceed 

 the credit by that amount. 



Use op Debit Columns. 



A "Cash" column is provided for the itemized entry of all cash 

 receipts. At convenient periods the amounts appearing in the 

 column are footed and the total transferred to the "Bank deposits" 

 column. Cash and checks to an equal amount are then deposited 

 in the bank. Footings are not carried forward except when the 

 entries of the day's business extend over to the following page and a 

 subfooting is necessary to secure the full total of the day's receipts. 

 The "Cash" column entries act merely as memoranda of the daily 

 receipts. 



BANK DEPOSITS. 



As explained under "Cash" the "Bank deposits" column is used 

 for the purpose of recording daily receipts of cash as deposited in 

 the bank. In order that the total may represent the entire debit 

 to cash at the end of the month, the balance of available cash in the 

 bank at the beginning of the month should constitute the first entry 

 of the month in this column. 



ACCOUNTS RECEIVABLE. 



In the "Accounts receivable" column are entered all items repre- 

 senting charges to personal accounts. The individual items are 

 posted to the respective accounts in the ledger, while the total for 

 the month is carried to the debit of the "Accounts receivable con- 

 trol" account in the general ledger. 



GENERAL LEDGER. 



All debits to general accounts, not including accounts for which 

 special columns have been provided, should be entered in the " General 

 ledger" column. Such accounts will include capital, income, 



