SYSTEM OP ACCOUNTS FOE FARMERS* COOPERATIVE ELEVATORS. 15 
made of the check showing "Cash debit $15.00/' and "B. & M. 
Railroad credit $15.00." This leaves a credit of $25 to the account 
for loss and recovery on grain leakage in transit, and a debit to the 
railroad of $10. 
Considering that the transaction has been definitely settled, and 
that no further recovery can be made, the following journal entry 
should be passed: 
Debit Loss and recovery on grain leakage in transit 10. 00 
Credit Claims B. & M. Railroad 10. 00 
This simply closes the railroad account, and leaves a balance in the 
loss and recovery on grain leakage in transit representing the true 
amount of recovery. 
THE COST ANALYSIS. 
The cost analysis (Form No. 15; see p. 30) has been provided 
to furnish information affecting the unit and relative cost of hand- 
ling grain and merchandise. The method of operation is as follows: 
Opposite "Bushels of grain handled" should be set down, first, 
the total of all grain taken into the elevator, this amount being ex- 
tended under the different kinds of grain as shown by the footings 
of the record of grain receipts, the total grain taken in being 100 per 
cent. The relative percentage of each kind of grain is then set down 
opposite the per cent mark under the column designated. On the 
same line should be added the value of coal and merchandise sales. 
After taking out an amount which would seem to be sufficient for 
the selling of merchandise, the different kinds of expense applying 
generally to all kinds of grain and merchandise, such as salary, in- 
surance, interest, power, and repairs, are then prorated according to 
the grain percentages. This amount will be, necessarily, more or 
less of an estimate, but a manager, by keeping account of the time 
spent on coal and merchandise sales in the space of a month, can 
arrive at a fair basis for the division of salaries. Insurance, interest, 
repairs, and miscellaneous, relating to merchandise, are contained 
in a few items and can be easily ascertained. 
Such items as "Power operating" apply only to grain. "Corn 
shelling — direct labor" includes only that labor which has been pro- 
cured especially for corn shelling, and would not include the mana- 
ger's or assistant manager's time, as their wages are prorated under 
"Salaries." Car cooperage should be distributed according to the 
amounts of grain received, except in cases where an account has been 
kept in the ledger showing the exact amount of cooperage against 
each kind of grain. 
After having prorated the different expense items, the addition of 
these gives the gross expense. Returns from storage and returns 
from dockage sold are then set down under the kinds of grain which 
have furnished these returns, and subtracted. Any returns from 
