SYSTEM OF ACCOUNTS FOR FARMERS ' COOPERATIVE ELEVATORS. 9 
RECORD OF GRAIN PURCHASES. 
The record of grain purchases (Form No. 3, facing p. 20) is a record 
of the net bushels and value of the grain purchased, together with 
storage which has accrued on the grain up to the time of purchase. 
Both the bushels and value of all grain recorded on this form should 
be totaled on dates to agree with the totals of the record of grain 
receipts. Like the record of grain receipts, the record of grain 
purchases should be totaled monthly. The totals showing the 
amount purchased for the year are carried to the grain report opposite 
" gross purchased." The total amount of all checks issued for 
grain in any month should be carried to the cash, journal, purchase, 
and sales record and there entered in the "bank withdrawal" column 
in one amount. The total cost of the various grains is then carried 
to the debit of the " grain accounts" in the " general ledger" column 
of the same form, this constituting a consolidated cash entry for 
all the transactions in grain purchases for the month. Where 
storage charges are represented, they should be credited to the 
" storage account" in the " general ledger" column, and in such 
•cases the cost of grain should equal the amount of the check plus 
the storage charges, because the storage charges are deducted from 
the grain cost in order to arrive at the amount of the check. 
RECORD OF GRAIN SHIPMENTS AND SALES. 
The record of grain shipments and sales (Form No. 4, facing p. 20) 
carries a record of all cars shipped and the net returns from each 
shipment. The proceeds from each variety of grain should be 
totaled and posted at the end of the month to the credit of "grain 
accounts" in the general ledger. The items in the "net proceeds" 
column should be posted to the debit of the grain commission accounts 
represented in the "shipped to" column. The monthly totals of 
bushels from this form should be carried to the grain report opposite 
"shipments and sales this period." In the operation of this form 
it will be found that some of the shipments for any month will be 
still standing out as grain in transit at the end of the month. In 
beginning a new month, the 1st of April, for instance, it would be 
necessary to make an entry for the month of March as follows: 
"Total March returns on February shipments"; opposite this 
would be set down in total the net returns of all February ship- 
ments which had been received during March. In order to avoid 
confusion, however, reference should be made to February entries 
for posting to the individual "commission accounts." By this 
method the total returns on all grain will have been posted to the 
proper "commission accounts" by individual postings. Although 
we post only totals to the credit of the "grain accounts," the total 
receipts on each kind of grain shipped during the previous month 
89896°— Bull. 236—15 2 
