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A SYSTEM OF ACCOUNTING FOR COTTON GINNERIES. 
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OPERATING SUPPLIES (N5). 
Debit: 
1. With the cost of all supplies used in 
the current operation of the gin. 
Credit: 
1. With the debit balance at the close 
of the fiscal period. (Debit Loss 
and gain.) 
Operating supplies include such items as lubricating oils and greases, waste, etc., 
but do not include any item of repairs, or office supphes. 
INSURANCE (N6). 
Debit: 
1. At the close of the fiscal period with 
the insurance premiums expired 
during the period. (Credit Pre- 
paid insurance. ) 
Credit: 
1. With the debit balance at the close 
of the fiscal period. (Debit Loss 
and gain.) 
O. ADMINISTRATIVE EXPENSE. 
OFFICE SUPPLIES (O1). 
Debit: 
1. With all purchases of stationery, 
printing and supplies used in the 
office. 
Credit: 
1. With the debit balance at the end 
of the fiscal period. (Debit Loss 
and gain.) 
Should there be any considerable quantity of these supplies on hand at the end of 
the fiscal year, the value should be conservatively estimated and an entry made, 
charging an asset account captioned ‘‘Office supplies, inventory,’’ and crediting this 
account. 
advance. 
The asset should be shown on the balance sheet under accounts paid in 
TELEGRAPH, TELEPHONE, AND POSTAGE (O2). 
Debit: 
1. With all payments for these items. 
—— 
Credit: 
1. With the debit balance at the end 
of the fiscal period. (Debit Loss 
and gain.) 
RENT (08). 
Debit: 
1. With the actual payments made on 
account of rent. 
2. With accrued rent at the close of the 
fiscal period. (Credit Accrued 
rent and taxes.) 
— 
Credit: 
1. At the beginning of the fiscal period 
with the accrued rent at the close 
of the previous fiscal period. 
(Debit Accrued rent and taxes.) 
2. With the debit balance at the end 
of the fiscal period. (Debit Loss 
and gain.) 
No economic or theoretical rent should in any case be entered into this account. 
