SYSTEM OF ACCOUNTS FOK FARMERS* COOPERATIVE ELEVATORS. 11 
Assuming that an elevator starts its current year with a certain 
balance of grain on hand, as shown by the inventory, at the end of the 
first month, by adding "receipts this period" to "balance last 
report," the result will be "gross on hand." By deducting from this 
the "shipments and sales this period," the difference will be the 
"net grain stock on hand." It is always important for a manager 
to know whether the grain which he has on hand belongs to the 
elevator in whole or in part, or is partly or entirely stored grain. 
By subtracting the gross amount of bushels of grain purchased from 
the gross receipts the total amount stored at date will be shown. 
Should this be greater than the net on hand, it will indicate that 
some grain which has been stored has been sold without being pur- 
chased from the owner of the grain — in other words, that there has 
been an amount of stored grain sold. Should the total stored at 
date be less than the net on hand, then the difference between the 
two would be the amount of purchased grain on hand. 
MERCHANDISE REPORT. 
The merchandise report (Form No. 8; see p. 23) serves merely as an 
inventory, giving the total on hand at the last inventory, purchases, 
sales, and net on hand, which should agree, allowing for proper 
deductions or additions, with the actual inventory. 
CASH, JOURNAL, PURCHASE, AND SALES RECORD. 
The cash, journal, purchase, and sales record (Form No. 1, facing 
p. 20) differs from ordinary books of first entry in that both the 
debit and credit entries, which are to be posted later to the ledger, 
are of necessity entered on this form before it can be balanced. 
The debit columns of this form are designated as follows : 
Date. 
Folio. 
Cash. 
Bank deposits. 
General ledger. 
Accounts receivable ledger. 
Hard coal (lbs , amount ). 
Soft coal (lbs , amount ). 
There are also provided four columns in blank which may be used 
to suit the convenience and requirements of the individual elevator. 
The credit columns comprise the following : 
Check number. 
Folio. 
Bank withdrawals. 
General ledger. 
Accounts receivable ledger. 
Sales ticket number. 
Hard coal (lbs , amount ). 
Soft coal (lbs , amount ). 
Miscellaneous grain (lbs. , amount ). 
