CHAPTER XXIII. 



CREAMERY BOOK-KEEPING. 



The object of book-keeping is to keep a record of busi- 

 ness transactions, enabling the proprietor or proprietors 

 at any time to determine the true condition of tlie business. 



In most businesses usually one of two forms of book- 

 keeping is followed : either double entry which makes use 

 of three books — day book, journal, and ledger — or single 

 entry which makes use of onh' two books, a day book or 

 journal, and ledger. 



The day book contains a detailed record of business 

 transactions. Entries are made in this book as soon as 

 the transaction occurs. 



The journal contains the debits and credits arranged 

 in convenient form for transferring to the ledger. 



The ledger contains the final results. 



Debits and Credits. These words are usually abbre- 

 viated Dr. and Cr. respectively. The debits and credits in 

 any business transaction are determined by the following 

 rule: debit zvhatevcr costs value: credit zvhatever pro- 

 duces value. In a journal entry the sum of the debits and 

 the sum of the credits must be equal. 



Double and Single Entry Book=keeping. While 

 double entry is the most complete form of keeping a busi- 

 ness record, it entails too much work for creameries, 

 which have but a limited time to devote to keeping books. 



Single entry book-keeping when properly carried out 

 has proved ver^' satisfactory and most creameries follow 

 this method in a more or less modified form. 



241 



