BOOKKEEPING FOE GKAIN ELEVATORS, 41 
SUPPLY ACCOUNTS SETTLED WITH GRAIN. 
When a request is received from a patron to deduct the amount 
which he may owe the company for supplies from the amount due 
him for grain sold, two grain checks should be issued. The first 
check should contain the total number of bushels and kind of grain 
being purchased, together with the balance due the patron after 
deducting the amount of his account from the full value of the grain. 
A second check should then be made without reference to bushels of 
grain and marked "for account receivable," in the full amount 
deducted from the previous check. This check is then indorsed by 
the patron and both checks are entered in the record of grain pur- 
chases, the first check going to the patron and the second being 
entered in the Cash Journal to the credit of the patron and deposited 
to the account of the elevator as cash received. By this means both 
sides of the transaction have been carried out through the only 
proper medium of settling accounts, which is cash. 
CONCLUSION. 
The foregoing pages describe the method of operating a system of 
grain elevator accounting devised to answer the requirements of grain 
elevators located at country points throughout the United States. 
The adoption of a uniform system of accounting should be of benefit 
both to the companies and to the men employed by them as managers, 
but the simple keeping of the records is not sufficient. To obtain 
benefits commensurable with the opportunities open in this field the 
manager and directors of the elevators possessing such an accounting 
system should make use of all the information which it is able to 
furnish. In order that the management of the elevator may be fully 
advised, not only as to the conditions of the business but as to the 
economic advantage of the present method of doing business, it is 
advisable that in every case careful attention should be paid to the 
grain and merchandise reports and to ascertaining the cost of opera- 
tion by use of the Cost Analysis. If the information thus obtained 
is made available to the stockholders and other interested parties, and 
they are thus assured that the business of the elevator is being 
handled in a competent manner and that detailed information regard- 
ing it can be furnished at any time, it will tend to strengthen the 
financial position of the company with those who extend credit to 
elevators during the season of crop movements. 
For the convenience of those interested in the system described in 
this bulletin, and for those who desire to install the system, the 
Bureau of Markets has provided printer's copy of the several forms 
for free distribution. A list of firms by whom the forms are pub- 
lished and carried in stock will be supplied on request. All elevators 
