BUSINESS PRACTICE AND ACCOUNTS FOR COOPERATIVE STORES. 41 
journal with suitable explanations, and should be approved by the 
manager before they are posted. (See page 33.) In this way the auditor 
will know at a glance just what has been entered in the ledger, and 
the taking of a trial balance will be greatly facilitated. 
B.— BOTH CASH AND CREDIT BUSINESS. 
A system of accounts which contains a complete analysis of a cash 
business is given in the preceding pages. But, unfortunately, few 
stores are able to confine themselves to this simple method of doing 
business. It is therefore necessary to outline the additional records 
required where credit is extended to customers, and where it is im- 
practicable to discount all bills. It should be emphasized that all the 
preceding records are necessary and that the following are merely 
additional credit records. They are (1) accounts with customers, 
kept either (a) in a separate ledger or (b) in an account file; and (2) 
accounts with creditors, kept likewise in a separate ledger or file. 
Four additional accounts are kept in the general ledger, viz: A con- 
trolling, or summary, account of Accounts Receivable; and another 
with Accounts Payable; sometimes settlements will be made tem- 
porarily by notes, and occasionally money will be borrowed. Hence 
accounts with Bills Receivable and Bills Payable must be kept. The 
method of keeping these accounts will be discussed in the above order. 
