ee 
. 
CLASSIFICATION OF LEDGER ACCOUNTS FOR CREAMERIES. 23 
During the year it is frequently found that errors or omissions were made in the 
work of closing the books for the previous year. These corrections should not be 
made through the Loss and Gain account but by making the adjustments direct to 
the Surplus account or to a Surplus Adjustment account. Any unusual item of 
profit or loss, such as might arise from a sale of land, buildings, etc., must not be 
entered in the Less and Gain aceount, but must be entered in the Surplus account. 
By referring to the illustration on page 35, it will be seen that the result of the 
Income and Expense Statement is the showing of Net Profit. This is the balance 
of the Loss and Gain account. It is now desirable to show what disposition is made 
‘of the net income, and this is effected by the last section of the statement, captioned 
Distribution of Net Profit. This is sometimes accomplished by the use of another 
account called Undivided Profits. However, it seems that the same results may be 
accomplished by the method here shown, without opening the additional account in 
the Ledger. 
INCOME ACCOUNTS. 
J. SALES. 
ButrerR SAues (J 1). 
DeEDIT: CREDIT: 
1. With the sale value of any butter 1. At the elose of each period with the 
that may be returned by a customer. total sales during the period: 
2 With the balance at the close of the 
_ fiseal year. (Credit Loss and Gain. 
CREAM SALES (J 2). 
DEBIT: CREDIT: 
i. With the sale value of any cream 1. At the close of the period with the 
that may be returned by a customer. total sales during the period. 
2. With the balance at the close of the 
fiscal year. (Credit Loss and Gain.) 
Mix SaueEs (J 3). 
Desir: CREDIT: 
1. With the sale value of any milk that 1. At the close of the period, with the 
may be returned by a customer. total sales during the period. 
2. With the balance at the close of the 
fiscal year. (Credit Loss and 
Gain. ) 
CHEESE SALES (J 4). 
DEBIT: CREDIT: 
1. With the sale value of any cheese 1. At the elose of the period, with the 
that may be returned by a cus- total sales during the period. 
tomer. “ 
2. With the balance at the close of the 
fiscal year. (Credit Loss.and Gain. ) 
