CLASSIFICATION OF LEDGER ACCOUNTS FOR CREAMERIES. 37 
DeEBIr. : CREDIT. 
$1,000 Additional Equipment Appropriation (Kefrigerating 
Plant). 
Reserve for Additional Equipment...............-.- $1, 000 
(Appropriation of income for purchase of re- © 
frigerating plant. ) 
1, 000 Savings Account. 
vaio Ne COMM Ta tye tt ot ae nee cn Soe See c ees 1, 000 
(To set aside appropriation in special Savings 
account. ) 
The above entries should be made periodically until the necessary amount has 
been raised. 
DEBIT. CREDIT, 
$5, 000 Bank Account. 
2 WINS eeAC CO UMN besos a eee en $5, 000 
(To withdraw fund from Savings account, making 
it available for the purchase of refrigerating 
plant. ) 
5, 000 Refrigerating plant. 
ISSHTK: LGCONIT MS a tates seed abe a see cae eae 5, 000 
(For purchase of plant.) 
5, 000 Reserve for Additional Equipment. _ 
(To close Reserve account into Surplus.) 
The required Ledger accounts would be: 
Savines AccouNT. 
DEBIT: CREDIT: 
1. With the periodical deposits to apply 1. With the amount withdrawn for the 
on the purchase of the refrigerating purpose of expansion. 
plant. 
“Any remaining balance should then be carried to the regular checking account by 
a credit to this account and a debit to the Bank Account. 
REFRIGERATING PLANT. 
DEBIT: CREDIT: 
1. With cost of new equipment at the 1. With the totai book value of any - 
time of purchase. part of the refrigerating plant sold 
or disposed of otherwise. 
RESERVE FOR ADDITIONAL EQUIPMENT. 
DEBIT: CREDIT: 
1. With the purchase price of new 1. With amounts periodically deposited 
equipment covered by this re- in the Savings account for the 
serve. (Credit to Surplus.) purpose of expansion. 
The balance of this account should be carried to the Surplus Adjustment account. 
