ACCOUNTING KECOKBS FOR COUNTS!' CREAMERIES. 15 



column will then represent the amount of money received in drafts, 

 checks, and cash for butter sold through outside dealers, plus the 

 value of butter sold on account. N 



OTHER SALES COLUMNS, 



The several columns headed "Butter — local," "Buttermilk/' 

 "Cream," "Milk," "Cottage cheese," and the two blank columns 

 provided for special use, like the "Sales — butter shipped" column, 

 are used for entry of the sales of the specific product designated. 

 They provide a summary of the income from such sales for each 

 monthly period. The totals of the columns are posted to their 

 respective accounts hi the general ledger at the end of the month. 

 The total of the "Butter — local" column, however, is carried, together 

 with the total of the "Sales — butter shipped" column, to the credit 

 of the general "Butter sales" account and not to a separate "Butter — 

 local" account. The sales of butter to patrons should be entered in 

 the "General ledger" column and be posted to the "Butter sales" 

 account. 



THE LEDGER. 



For convenience in operation it is often found advisable to divide 

 the ledger into two parts, so that a distinct division may be made 

 between the general accounts and personal accounts or accounts 

 receivable. Where this method is followed, an account should be 

 earned in the general ledger under the caption "Accounts receivable 

 control." Postings to this account are made once a month and are 

 derived from the totals of the debit and credit accounts receivable 

 columns in the cash journal. It follows then that since the postings 

 to this account are the totals of all debit and credit entries made to 

 individual accounts, the balance of "Accounts receivable" taken 

 individually should equal the balance of the control account. By 

 dividing the ledger into two parts and carrying control accounts in 

 the general ledger, it is also possible to take a trial balance covering 

 the entire operation of the business by reference to the accounts in 

 the general ledger only. 



The correctness of the accounts receivable ledger is ascertained 

 by comparison of its balance with that of the control account. The 

 practice of arbitrarily ruling off accounts in the ledger at the end of 

 each month because of the fact that creamery operation usually is 

 divided into monthly periods is not recommended, since it is intended 

 that the ledger shall represent a continuous, accumulated record of 

 the transactions throughout the year. For convenience in making 

 up the operating statement, pencil notations of the monthly balances 

 of accounts may be set down as marginal notations in the ledger 

 accounts, and all entries to the operating statement, except inven- j 



