A SYSTEM OF ACCOUNTING FOR COTTON GINNERIES. 17 
drawals column from the footing of the bank deposits column. The 
balance thus forwarded must be deducted from the total of the 
column before posting is made to the general ledger at the end of the 
month. 
General ledger.—This column is used for all items to be posted to the 
debit of the accounts in the general ledger, and for which no special 
columns have been provided. Posting should be made in detail from 
the column to the proper accounts in the general ledger. 
Ginning ledger (accounts receivable).—In the ginning ledger column 
are entered all charges for ginning as they are recorded in the ginning 
register and all charges for sales of material on account. All detail 
postings are made from the register to the ginning ledger and only 
the total charges are posted once a month or at the end of the season 
into the accounts receivable control account on the general ledger. 
Notes payable.—In this column are entered payments on written 
obligations, such as notes, mortgages, drafts, etc. 
Bagging and ties purchases.—In this column are entered amounts 
paid for all purchases of bagging and ties which are to be used in 
the ginning operations. 
Cotton seed purchased.—In this column are entered all amounts paid 
for cotton seed purchased. 
Operating expense columns.—In these columns are entered pay- 
ments for the various charges indicated by the column caption. 
Other columns are operated in a similar manner to those which 
have been mentioned. 
CREDIT COLUMNS. 
Cash.—The cash column carries all items of cash of whatever 
nature which are disbursed by the organization, either for petty 
expenditures or to be deposited in the bank. It should be a strict 
rule that all cash receipts are to be deposited in the bank when it is 
possible to do so. It is sometimes found inexpedient to adhere to 
this rule, and for that reason a cash column on the credit side of the 
journal has been provided. Where a petty cash fund is in use, the 
credit cash column need not be used. 
General and ginning ledgers.—These columns serve the same pur- 
poses on the credit side as were explained on the debit side, the 
postings in this instance being made to the credit side of the ledger 
accounts. 
Notes payable.—In this column are entered loans and renewals 
for which written obligations have been given. 
Cottonseed sales, custom ginning income.—The entries into these 
and other columns not specifically mentioned are items which fall 
under the respective captions, and are similar 1 in operations to those 
described. 
Blank columns are provided for accounts having frequent entries. 
55231°—21—Bull. 985——3 
