a. 
CLASSIFICATION OF LEDGER ACCOUNTS FOR CREAMERIES. 9 
B. SECURITIES. 
SINKING Funp (B 1). 
DeBIr: | CREDIT: 
1. With all amounts withdrawn from | 1. With any amount expénded for the 
the general funds of the business | purpose for which the special fund- 
and deposited in a special fund for | | was created. 
the specific purpose of meeting | 
some fixed obligation at a future | 
time. 
2. With any income derived from the | 
money in this fund. (Credit | 
Sinking Fund Reserve.) | 
A sinking fund is an amount of money periodically withdrawn from the business 
and invested in securities or deposited in a separate bank account for the purpose of 
meeting a fixed lability at some future time. For the purpose of determining the 
amount to be set aside each period, reference may be made to any of the published 
bond tables. 
Further discussion of this subject will be found under Sinking Fund Reserve, 
page 19. 
C. FIXED ASSETS. 
Lanp (C1). 
DEBIT: | CREDIT: 
1. With the original purchase price of 1. With the total book value of any land 
land as shown by the Balance sold. . 
Sheet at the time of opening the 
books. 
2. With all costs pertaining to the origi- | 
nal purchase. 
3. With the cost of any permanent im- 
provement made subsequent to 
the purchase. 
Land should be carried on the books at actual costs and should not be increased or 
decreased because of a change in value. The difference between the selling price 
and the original cost of any real estate should be debited or credited, as the case may 
be, to Surplus Adjustment account. 
BuiLpines (C2). 
i 
Desir: | CREDIT: 
1. With the original purchase price of | 1. At the time of sale or destruction 
the buildings as shown by the Bal- with the total book value of any 
ance Sheet at the time of opening building sold or destroyed. 
the books. 
2. With costs of all new construction. 
b 
oo 
. With the cost of all additions or alter- 
ations when such costs increase the 
usefulness of the plant. 
. With the excess of the cost of the re- 
placement over the original cost of 
the part replaced. 
Ho 
180208°—20—Bull. 865——2 | 
