f 
Debit: 
1. With the sale value of any cotton- 
sold, but which has been subse- 
quently returned. 
2. With the credit balance at the end 
of the fiscal period. (Credit Loss 
and gain.) 
Debit: 
1. With the sale value of any cotton 
which has been recorded as sold 
but which has been subsequently 
returned. 
2. With the credit balance at the end of 
the fiscal period. (Credit Loss 
and gain.) 
A SYSTEM OF ACCOUNTING FOR COTTON GINNERIES. 
seed which has been recorded as | 
Debit: 
1. With the sale value of any goods 
which have been recorded as sold, 
but which have been subsequently 
returned. 
2. With the credit balance at the end of 
the fiscal period. (Credit Loss 
and gain.) | 
Debit: 
With the credit balance at the close of 
the fiscal year. (Credit Loss and 
and gain.) 
31 
L. TRADING INCOME. 
COTTONSEED SALES (L1). 
Credit: 
1. With the sale value of all cottonseed 
sold. (Debit Accounts receivable 
or Cash accounts. ) 
The sale of all cottonseed must be credited to this account. 
COTTON SALES (L2). 
Credit: 
1. With the sale value of all cotton sold. 
(Debit Accounts receivable or 
Cash account. ) 
The sale of all ginned cotton must be credited to this account in order that the true 
relation existing between the trading and ginning operation may be determined. 
BAGGING AND Ties SALES (L38). 
Credit: 
1. With the value of bagging and ties 
used in ginning operations and 
charged to customers as a part of 
the charge made for ginning. 
2. With the sale value of bagging and 
ties used in ginning purchased 
seed cotton. 
3. With the sale value of any bagging 
and ties sold direct and not con- 
sumed in the ginning process. 
All bagging and ties used in any of the ginning operations, or sold to outsiders must 
be accounted for by a credit to this account. 
between the ginning and trading operations be maintained. 
sary to establish such a relation, if the unit cost of ginning is to be ascertained, and 
the adequacy of the charge made for ginning to be determined. : 
In no other way can a proper relation 
It is absolutely neces- 
M. MISCELLANEOUS INCOME. 
CasH Discount (M1). 
Credit: 
With any income arising from cash dis- 
counts deducted from invoices paid. 
I i re a ee NN ee ae Se EE Pt, SY J A ERs 
