BOOKKEEPING FOR GRAIN ELEVATORS. 
19 
In a large number of the instances where loss of grain results from leakage in transit 
the elevator company has a legimate claim against the transportation company. 
When a claim for such a loss is made, an entry should be passed crediting the grain 
account affected and debiting the Railroad Claims account. When cash is received 
in full or partial settlement of the claim, the Cash account will be debited and the 
Railroad Claims account credited with the amount collected. Any uncollectible 
claims will be debited to the Leakage in Transit account and credited to the Rail- 
road Claims account. At the end of the year unsettled claims, on which it is believed 
recovery will be made, will be inventoried and carried to the following year. 
Since claims carried over from one year to the next may prove to be worthless, it 
is suggested that a reserve account be set up to cover such possible losses rather than 
to carry the claims over from one year to the next as an absolute asset. Where an 
account, Reserve for Loss on Realization of Railroad Claims, is set up, it would be 
debited with losses on any claims carried over from one year to the next. Such a 
reserve would be created in the same manner as described under Loss from Bad Debts. 
F. CURRENT LIABILITIES. 
Notes Payable (Fl). 
Debit: 
Credit: 
1. With amounts paid on outstanding 
1. With the balance of outstanding 
notes. 
notes at the time of opening the 
2. With the unpaid portion of old notes 
books as shown by the balance 
canceled by renewal. 
sheet. 
2. With all new notes issued, including 
renewals of old notes. 
Accounts Payable (F2). 
Debit: 
Credit: 
1. With payments on account. 
1. With amounts due creditors on open 
2. With purchased goods returned for 
accounts at the time of opening 
credit. 
the books as shown by the balance 
3. With allowances and refunds on 
sheet. 
purchases. 
2. With the invoice value of merchan- 
dise purchased on credit. 
Separate accounts should be opened for firms with which a credit business is 
conducted currently. Miscellaneous accounts payable may be handled in one 
account under the caption Miscellaneous Accounts Payable. 
Stock Dividend (F3). 
Debit: 
Credit: 
1. With the amount of the dividend 
1. With the dividend declaration when 
when it is paid. 
such dividend is expressed as a 
percentage of the capital stock. 
(Debit Surplus.) 
Dividends should be numbered and so earmarked in the items column of the ledger 
page. 
