ACCOUNTING RECORDS FCR COUNTRY CneAMERIES, Maal 
Ps through the predating of cash payments for butter-fat purchases. 
_ It is recommended therefore that the amount owed to patrons for 
butter fat be credited to ‘“‘ Accounts payable patrons’”’ as shown in the 
journal entry just given, in order that the books may be closed at as 
early a date as possible, thus assuring that the trial balance and the 
operating statement agree before actual cash payments are made. 
When the patron’s checks are made out, they should be charged to 
“Patrons accounts payable,’’ thus closimg the account. 
PATRON’S VOUCHER. 
Postings should be made to the patron’s voucher for all incoming 
products, as represented by the amounts entered on the cream and 
mulk receiving sheets. The amounts to be deducted are derived 
from the patrons’ butter orders and from charges on account for 
hauling and sundries. After the price per pound has been ascertained, 
the value of butter fat for each patron computed, and the necessary 
deductions taken therefrom, the check may be made out and the 
voucher forwarded to the patron. In case the deductions exceed 
the amount due the patron, the check should be removed from the 
statement, and the statement should be mailed to the patron showing 
the amount of his overdraft. Such overdrafts should be noted in 
all cases on patrons’ vouchers under deductions for the next month. 
PATRON’S SETTLEMENT SHEET. 
The patron’s settlement sheet is a summary of all the credits and 
debits which have been shown.upon the patrons’ vouchers. It 
shows the total pounds of skim milk and butter fat as well as the 
total deductions on account for various supplies and expenses charge- 
able to patrons. The price per pound which is to be paid for butter 
fat is ascertained by dividing the ‘‘Balance for distribution” by the 
total pounds of butter fat. Such a division frequently will give a 
quotient containing a large fraction and in such cases it usually is 
found convenient to use only the whole number as the price per 
pound rather than the actual figure as given by the division. Using 
this, the total payments to patrons necessarily will be less than the 
actual balance for distribution. The difference between the two 
represents the undistributed balance previously referred to under the 
discussion of the operating statement. The balances remaining after 
deducting the various expenses chargeable to patrons from the 
amounts to be distributed, represent the payments to be made by 
check, or in case the patron has overdrawn his account, the amount 
of his overdraft. Such overdrafts should be carried forward to the 
next month’s distribution sheet as deductions against the individual 
patrons to whom they are chargeable. As the debits and credits 
