ACCOUNTS FOR LIVE-STOCK SHIPPING ASSOCIATIONS. 13 
I sides of the cash journal should at all times be in balance, with the 
exception that the debit side should exceed the credit by the exact 
amount of the first entry of the month, which should be the amount 
of cash in the bank, this entry being made at the head of the bank 
deposits column. At the close of the last business day of the month 
the bank book should be balanced, so that the manager will be able 
to check up the correctness of his entries in respect to cash. If the 
difference between the totals of the bank deposits column and the 
bank withdrawals column of the cash journal is equal to the differ- 
ence between the bank balance as shown in the passbook and the 
outstanding checks, this will prove that the entries as made in the 
cash journal correspond to the transactions with the bank, and the 
two balances therefore are considered reconciled. 
POSTING OF THE LEDGER. 
In associations which have been doing business over a period of 
time, it will be necessary before making postings to the ledger to set 
up the accounts representing the assets and liabilities of the associa- 
tions. 1 These assets and liabilities will include such assets as cash 
in the bank, equipment for doing business, notes receivable, accounts 
receivable, inventory accounts, and such liabilities as bills payable 
and capital stock outstanding. 
Since the cash journal is arranged with columns so that the several 
commodities may be accounted for in the proper columns, the number 
of necessary postings to the ledger is reduced. As the work progresses 
during the month, all the entries in the accounts receivable and gen- 
eral accounts columns, both debit and credit, should be made daily 
to their respective accounts in the ledger. Such postings as are nec- 
essary in respect to various commodities sold can be made at the 
end of the month in total, posting to the ledger both the amounts in 
pounds and the values of the commodities sold. In respect to pur- 
chases of supplies, the same procedure should be followed regarding 
posting both pounds and price, so that the ledger account not only 
will give the value and kind of goods on hand, but will serve also as 
a perpetual inventory of such commodities. 
CONCLUSION. 
As has been the practice of the office in relation to its other account- 
ing systems, improvements will be made in the system for live-stock 
shipping associations described in this bulletin wherever it is shown 
that such changes will improve its adaptability to the business. 
1 For further discussion of openmgbooksseeHumphrey,Johnk., and Kerr, W.H., "Lumber Accounting 
and Opening Books in Primary Grain Elevators," U. S. Department of Agriculture, Markets Document 
No. 2, 1916. 
