2 BULLETIN 590, U. S. DEPARTMENT OF AGRICULTURE. 



After a first-hand study of the conditions prevailing in fruit ship- 

 ping organizations had been made, the system was devised and in- 

 stalled in eight representative concerns, where its operation was 

 closely supervised. In the final draft of the forms, frequent refer- 

 ence was made to the forms of other systems, as well as to the general 

 procedure now in use in some of the organizations. 



The system outlined in this bulletin is intended to cover all opera- 

 tions incident to the handling of growers' supplies and of the growers' 

 fruit, from the time it is received at the packing-house until final 

 returns have been made for it. The aim has been to avoid duplica- 

 tion and to reduce clerical work; care has been used to provide a 

 method applicable to the Working conditions of the local offices, which 

 are not always favorable, and to allow for a proper division of labor. 



The benefits to be derived from the adoption of a uniform system 

 of accounting are obvious, particularly the possibilities of the inter- 

 change of information between organizations, which is now of little 

 or no value on account of the different treatment accorded the ac- 

 counts in the various organizations. This is true especially in respect 

 to general costs of operation and packing-house costs, and it is hoped 

 that the information contained in this bulletin will aid the organiza- 

 tions in a standardization of these costs. 



BOOKKEEPING. 



The bookkeeping for fruit shipping organizations, particularly if 

 they are farmers' organizations, involves several features not found 

 in other lines of business. Numerous important details are to be 

 looked after, some of which, occurring during the height of the ship- 

 ping season, may seem unimportant and be allowed to pass unre- 

 corded. When, however, their true significance and their relation to 

 the balance of the record is realized, all operations will be suspended 

 until the unfinished work has been brought up to date. 



The tendency in some offices to allow a portion of the work to go 

 unrecorded, awaiting the close of the season before entering it, is 

 open to severe criticism. By that time the data may be so widely 

 scattered that it is a difficult matter to accumulate the desired facts. 

 A fixed daily office routine should be adopted, and the accounting 

 work kept up to date. It is incumbent upon the manager to follow 

 the operations of all departments of the business closely, and he 

 should require from the bookkeeper, promptly at the close of the 

 month's business, (1) a trial balance of the general ledger; (2) trial 

 balances of the mercantile and fruit ledgers, the totals of which must 

 agree with the balances appearing on their respective controlling 

 accounts; and (3) a reconciliation of the balance of cash in the bank, 

 appearing on the cash journal, with the balance as shown on the 

 bank pass book or statement. 



