CHAPTER XXIV 

 CREAMERY BOOKKEEPING ■ 



A. DEFINITION AND GENERAL INFORMATION 



Bookkeeping is the science of making a systematic record of 

 business transactions. By a business transaction is understood 

 an exchange of values. 



I. Systems of Bookkeeping. — The systems adopted by the 

 various firms differ greatly so as to meet the needs of the va- 

 rious concerns. There are two general systems known in book- 

 keeping which include all; these are "Single Entry " and Double 

 Entry Systems." 



1. The Single Entry System. — By single entry is understood 

 an entry to only one account. This may be a credit or a charge. 

 Only personal accounts are affected by this system and the 

 books will show no balance and consequently no profit or 

 loss. 



2. The Double Entry System. — By double entry is under- 

 stood an entry that is made twice. If a credit is made to 

 one account a corresponding debit is made to some other 

 account. By this system the ledger is kept in balance per- 

 petually. 



n. The Ledger. — The ledger is conveniently divided into 

 two parts: first, the general ledger; second, the debit ledger. 



I. The general ledger is a book which contains a summary 

 of all of a firm's business transactions. It shows its resources 

 and habilities. 



> It is suggested that students familiarize themselves with "Accounting Records 

 for Country Creameries," by Nabstoll, Bulletin No. 5Sq, U. S. Department o£ 

 Agriculture. 



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