BUSINESS PEACTICE AND ACCOUNTS FOE COOPEEATIVE STOEES. 53 
checking the notes on hand at the last audit and those received and 
paid during the period. 
Real estate. — The real estate should be valued at the conservative 
market value, and sometimes it is advisable to examine deeds, mort- 
gages, letters, etc. 
Capital stock. — The capital stock must balance with the credit 
side of the Capital Stock Account in the Membership Ledger. 
Bills payable. — A register is kept of Bills Payable if the business is 
extensive enough to warrant it (Form 24), and no entry is permitted 
in this book without the approval of the manager. The amounts 
not marked "Paid" must equal the total shown in the General 
Ledger. 
Accounts payable. — The fact that the total balances in the Creditors' 
Ledger equals the controlling account balance in the General Ledger 
is generally taken as evidence of the correctness of the items. That 
this is not sufficient is evident from the fact that if a deferred item 
were either intentionally or accidentally omitted from the books 
or schedules, the amount would be a liability still, but the account 
would be short by that amount. The only satisfactory method oj 
proving creditors'' balances is by the creditors' own monthly statements. 
This is a precaution which is too often overlooked. 
Surplus. — The surplus is made up of the several entries from 
the Journal at the close of each balance period. 
There is a difference of opinion as to whether a single auditor or a 
committee should be employed. In most cases it is found that a sin- 
gle auditor is more satisfactory. In the average community, really 
competent accountants are scarce, and the greatest care must be 
exercised to avoid careless and perfunctory audits. It will be impos- 
sible to retain competent auditors without fair compensation; and 
the resources of the average cooperative association are such that 
the expense of an auditor will not be excessive. If the business war- 
rants it, a certified public accountant should be employed. Gen- 
erally, it should be a matter of indifference whether or not the audi- 
tor is a member of the association. In most cases, however, it is 
better if he is a nonmember. Perhaps the best results are obtained 
if the membership elect an auditing committee. at the annual meet- 
ing, with the understanding that this committee employ a competent 
auditor. 
OFFICE EQUIPMENT. 
Too much attention can not be given to proper office equipment. 
Nothing discredits the store more quickly in the opinion of dis- 
criminating trade than slovenly appearance of the premises, and 
particularly an office littered with all kinds of rubbish, devoid of every 
convenience and comfort. Too often the opinion exists that a farm- 
