20 BULLETIN 590, U. S. DEPARTMENT OP AGRICULTTJEE. 



caption "cash" is opened in the general ledger and the balance of 

 the cash on hand carried to it at the end of the month. 



Bank. — The excess of the total of the bank deposits column in the 

 cash journal, representing the amount of the deposits plus the bal- 

 ance carried forward from the previous month, over the total of the 

 bank withdrawals columns, representing the amounts disbursed, 

 demonstrates the available amount of cash in the' bank at the end 

 of the month. This balance is posted to the account under the 

 caption of the name of the* bank. If it is desired to have the bank 

 account in the ledger show the amount of receipts and disbursements 

 of cash, the totals of the bank deposits and bank withdrawals can 

 be posted to the account at the end of each month instead of posting 

 the balance. 



Supply accounts. — It is usually desirable to ascertain the gross 

 profits on the various lines of supplies handled. To open an account 

 with each commodity, however, would result in a great variety of 

 segregation and supplies are therefore grouped, as a rule, and accounts 

 opened under the following captions: Spray; boxes; paper; nails; 

 labels and labeling; miscellaneous. 



These accounts are debited with the cost of the commodity and the 

 freight charges. They are credited with the total sales. They are 

 also debited with the amount of goods 'returned by customers and 

 credited with the cost of goods returned by the organization. 



The label account also includes cost of paste and the labor in 

 affixing labels to the boxes. The labels are usually bought and 

 delivered in one lot, making but one charge to the account for that 

 item. Hence it does not appear necessary to open another account 

 for the actual work of labeling. 



Merchandise. — Besides the orchard supplies, such as boxes, paper, 

 nails, spray materials, ladders, etc., which are handled by practically 

 all fruit-shipping organizations, some also deal in grain, hay, feed, 

 flour, etc. In order to differentiate between the growers' supplies 

 and these commodities, an account under the caption "Merchan- 

 dise" is opened to record their purchase and sale. 



Bills receivable and bills payable accounts. — The bills receivable 

 account shows the amount due on signed obligations and includes 

 membership notes and drafts which have been accepted. The bills 

 payable account shows the amount owing by the organization on 

 signed obligations. 



Controlling accounts for the mercantile and fruit ledgers. — The con- 

 trolling or summary accounts will disclose in condensed form through 

 posting of monthly totals the transactions that are posted in detail 

 from day to day in either of these ledgers. At the beginning of the 

 season the mercantile ledger controlling account is debited with the 

 total of all the balances appearing on the mercantile ledger, as shown 



