CREAMERY BOOKKEEPING 34I 



side of the ledger while the amount depreciated is entered on the 

 credit side. Suppose the value of the equipment January ist 

 is $3,ocxD and that a depreciation of $50 per month is allowed; 

 then the equipment will at the close of the year show a value 

 of $2,400, provided no new equipment was added during the 

 year. If equipment to the amount of $300 was added, then 

 the equipment account will show a value of $2,700. The 

 amount depreciated should represent the actual loss due to wear, 

 breakage, etc. 



A creamery operating routes with its own teams and wagons 

 should keep a similar ledger account of the horses, wagons, and 

 harness. If several departments are operated by the same 

 creamery, such as ice cream, butter, and cheese departments, 

 then a separate ledger account should be kept of the equipment 

 for each separate department. If the creamery owns its own 

 building, a building account should be carried, etc. The ob- 

 ject is that the record should always be complete enough so that 

 the management at all times will have a correct idea of the assets 

 and liabihties of the enterprise. 



C. RECORD OF SALES 



A complete monthly record should be kept of aU sales. Such 

 record should be complete enough to furnish information 

 about cash and credit sales, sales to patrons, and consignments. 

 ^ I. Cash Sales. — Such are sales for which cash is received 

 upon the deUvery of the goods. The only record necessary to 

 keep of such sales is the original sales ticket (Form XXI, p. 239) 

 and a total of the day's cash sales is recorded on the sales 

 record. 



n. Credit Sales. — Credit sales are recorded on the same 

 forms as cash sales; in addition thereto an entry of each per- 

 sonal credit sale is made to the debit ledger (Form XXX). 

 After the daily entries have been made to the debit ledger the 

 sum of the entries for the day should be taken and should check 

 with the total credit sales as recorded on the sales record. 



III. Sales to Patrons. — Although these are credit sales they 

 are recorded separately as, instead of being entered on the debit 



