BUSINESS PRACTICE AND ACCOUNTS FOR COOPERATIVE STORES. 31 
RECONCILING THE BANK ACCOUNT. 
Usually the bank returns the canceled checks at the end of each 
month with a statement of the balance. It should be the first duty 
of the bookkeeper to arrange the checks numerically and reconcile 
the bank balance with that shown by the cashbook. This is done 
by the following formula: 
Store balance $742. 37 
Add outstanding checks 65. 40 
Bank balance 807. 77 
Cash Summary. 
The cash summary is merely a recapitulation of the totals of the 
receipts and payments. The same form is used and no change what- 
ever is made in the classification. The cash statement (Form 7) is 
the total of this summary (Form 18). 
Coupon and Scrip System. 
One of the most serious objections to strictly cash business is the 
inconvenience to the customer in handling change. The percentage 
of customers who carry a bank account and prefer to pay monthly 
by check is growing year by year. The convenience of ordering by 
telephone and having goods delivered in the absence of the house- 
keeper is recognized by all. To overcome these objections coupons 
are often sold in convenient books of $5, $10, or $25. Many stores 
find this system so valuable that they offer a small discount for such 
advances. So long as the store has no surplus capital, such discount 
should be more than offset by the trade discount obtained from 
dealers for prompt payment. As the coupons are sold for cash only, 
the sale is entered from the Daily Summary into the Receipts Book. 
The total coupons sold, less the coupons returned, represents a 
liability, and must be so entered in the Balance Sheet (16). It is 
not necessary to provide the cash register with a separate key for 
the coupons, because they should be counted in as cash in the daily 
balance. Every coupon book should be numbered and a proper 
receipt should be taken for every book issued. The books should be 
issued in numerical sequence, and the auditor should require a strict 
accounting of the books on hand at each audit. A typical book has 
the following instructions on the cover: 
1. Under no circumstances will these coupons be received in payment for goods 
purchased prior to the sale of this book. 
2. The unused portion of this book may be redeemed at the face value of the returned 
coupons, less 3 per cent, provided the book is presented within one year from date oi 
sale indicated by punch mark in margin of cover. 
3. Detached coupons will not be redeemed nor accepted in payment for merchan- 
dise. "When the coupons have been exhausted, preserve this cover as a receipt foi 
