CREAMERY BOOKKEEPING 339 



issued. That information is by this system contained on the 

 duplicate. 



As will be noted, the statement (Form XXXIII) also answers 

 the purpose of a patron's ledger, and the bookkeeping is thus 

 materially facilitated and it assures prompt payment for mer- 

 chandise purchased by the creamery patrons. 



II. Forms of Purchase Records. — The purchase record 

 may for the sake of convenience be divided into two forms, one 

 containing an itemized record of purchases and the other a sum- 

 mary of daily purchases. 



An itemized record of purchases is kept so the one who is in 

 charge of purchases may be enabled to know when orders for 

 goods were placed, when such goods were received, and when 

 paid for. Such a record is convenient to refer to at various 

 times and particularly when closing the books at the end of 

 each month. A glance at this report will give information as to 

 whether the goods inventoried at the close of the month have 

 been paid for. 



The monthly purchase record furnishes a record of all pur- 

 chases made during the month including all items which have 

 been paid, such as labor, insurance, interest, depreciation, etc. 



Entries may be made on the monthly purchase record when- 

 ever payments are made, or not later than the last day of 

 the month for all goods, labor, etc., received during the 

 month. 



III. Record of Depreciation. — Depreciation and similar 

 items, the amounts of which are paid back to the firm, may be 

 treated the same as any account payable and a check issued, 

 payable to the firm by which issed. This amount, as in case of 

 depreciation, is credited to the plant and equipment account 

 and charged against the expense accounts of the departments. 

 The advantage in issuing a check for the amount is that the 

 amoimt of checks issued should equal the total amount of the 

 purchase record. 



The general ledger should always contain a complete record 

 of depreciations. Consider, for example, the equipment ac- 

 count ; the cost of the equipment should be entered on the debit 



