ACCOUNTING RECORDS FOR COUNTRY CREAMERIES. 21 



through the predating of cash payments for butter-fat purchases. 

 It is recommended therefore that the amount owed to patrons for 

 butter fat be credited to "Accounts payable patrons" as shown in the 

 journal entry just given, in order that the books may be closed at as 

 early a date as possible, thus assuring that the trial balance and the 

 operating statement agree before actual cash payments are made. 

 When the patron's checks are made out, they should be charged to 

 " Patrons accounts payable," thus closing the account. 



patron's voucher. 



Postings should be made to the patron's voucher for all incoming 

 products, as represented by the amounts entered on the cream and 

 milk receiving sheets. The amounts to be deducted are derived 

 from the patrons' butter orders arid from charges on account for 

 hauling and sundries. After the price per pound has been ascer tained, 

 the value of butter fat for each patron computed, and the necessary 

 deductions taken therefrom, the check may be made out and the 

 voucher forwarded to the patron. In case the deductions exceed 

 the amount due the patron, the check should be removed from the 

 statement, and the statement should be mailed to the patron showing 

 the amount of his overdraft. Such overdrafts should be noted in 

 all cases on patrons' vouchers under deductions for the next month. 



patron's settlement sheet. 



The patron's settlement sheet is a summary of all the credits and 

 debits which have been shown upon the patrons' vouchers. It 

 shows the total pounds of skim milk and butter fat as well as the 

 total deductions on account for various supplies and expenses charge- 

 able to patrons. The price per pound which is to be paid for butter 

 fat is ascertained by dividing the "Balance for distribution" by the 

 total pounds of butter fat. Such a division frequently will give a 

 quotient containing a large fraction and in such cases it usually is 

 found convenient to use only the whole number as the price per 

 pound rather than the actual figure as given by the division. Using 

 this, the total payments to patrons necessarily will be less than the 

 actual balance for distribution. The difference between the two 

 represents the undistributed balance previously referred to under the 

 discussion of the operating statement. The balances remaining after 

 deducting the various expenses chargeable to patrons from the 

 amounts to be distributed, represent the payments to be made by 

 check, or in case the patron has overdrawn his account, the amount 

 of his overdraft. Such overdrafts should be carried forward to the 

 next month's distribution sheet as deductions against the individual 

 patrons to whom they are chargeable. As the debits and credits 



