A SYSTEM OF ACCOUNTING FOR COTTON GINNERIES. 39 
REOPENING THE BOOKS. 
After having prepared the balance sheet and Income and expense 
statement, it 1s necessary to make certain journal entries in order 
that the accounts for the succeeding fiscal period may show the true 
results of the operations. These are as follows: 
| a) : 
Debit. Credit. 
000 Seed-cotton purchases. 
000 Cottonseed purchases. 
000 Cotton purchases. 
000 Bagging and ties purchases. 
Me RWS) ST OSA Ce reso IGN LER ey ant DAML Ta aia elo a eB 000 
To transfer the inventories on hand to the purchase accounts and close the inventory 
account. 
(2) 
000 Accrued rent and taxes. 
To close the accrued account and adjust the debits to the expense accounts. 
It will now be possible to proceed with the entries for the new 
period, and the books will then reflect the correct results of the new 
period operations. 
