ACCOUNTING FOR FRUIT SHIPPING ORGANIZATIONS. 21 



by the trial balance. The account is currently debited with the total 

 of the column headed " Mercantile ledger" on the left-hand side of 

 the cash journal and is credited with the total of the " Mercantile 

 ledger" column on the right-hand side of the cash journal. The 

 resulting balance will be the total of the balances appearing in the 

 mercantile ledger. The fruit-ledger controlling account is operated 

 in like manner. 



Accounts payable. — The comparatively small number of creditors' 

 accounts warrants the opening of an individual account with each. 

 The credit balance appearing on any one of these accounts measures 

 the amount due that particular creditor. 



Fruit sales. — Instead of opening one account under the caption 

 " Fruit account," to which are credited the receipts from the sales of 

 fruit and to which are debited the gross returns made to growers, 

 two accounts are opened under the captions " Fruit sales" and "Fruit 

 returns." 



The fruit sales account is credited with the amount of the receipts 

 from the sales of fruit and is debited with all allowances made after 

 the payment has been received. The credit balance appearing on 

 this account is the net amount of money received from the sale of 

 fruit. It is practically the controlling account for the distribution 

 to the various pools. 



Fruit returns. — The fruit-returns account is debited with the gross 

 amount of returns made to the growers. The debit balance appearing 

 on this account represents the total amount paid to growers, and 

 should equal the credit balance appearing on the fruit-sales account. 



Overage and underage account. — In closing down the pools on fruit, 

 it is usually the case that there remains a small balance which can not 

 be apportioned over the number of boxes at even cents or mills. In 

 order to clear the fruit sales account of these unapportioned balances, 

 they are credited to overage and underage account. Conversely, 

 other pools may lack but the equivalent of a fraction of a cent per box 

 of paying out. The accumulations in this account are then used to 

 supply the deficiency. 



Building fund accumulations. — The financing of the construction 

 of warehouses and packing houses, the purchase of the land, and the 

 construction of the spur track is usually accomplished by means of a 

 loan. This indebtedness is liquidated over a period of 3 to 5 years by 

 deductions at a given rate of 3 to 6 cents per box on the fruit handled 

 for the growers. The credit balance appearing on this account is the 

 amount of the accumulated deductions. As fast as the building loan 

 is paid off, shares of stock or other evidences of the property interests 

 of growers in the property of the association may be issued. 



