8 BL'LLETIX 236, U. S. DEPAETMEXT OF AGRICULTURE. 
CASH RECEIPT. 
All receipts of money other than checks are recorded upon a cash 
receipt (Form Xo. 14: see p. 29). It is quite essential that such a 
receipt be used, as the practice of receiving scrip or coin without 
making a record of the transaction at the time of receipt often leads 
to discrepancies which are difficult to account for later. 
COST ANALYSIS. 
A feature of this system and one upon which considerable emphasis 
should be laid is a cost analysis (Form No. 15: see p. 30), by 
which the relative amounts of grain handled and the actual and 
relative cost per bushel are determined. Upon this form a detemiina- 
tion of the percentage of cost in handling merchandise is also worked 
out. The value of knowing the ratio of costs in the operation of a 
business is a well-established essential in many commercial enter- 
prises, and it is no less important to the successful operation of grain 
elevators. 
In conjunction with this system. any double-entry, loose-leaf ledger 
accommodating general accounts and accounts receivable may be 
used. To be assured of the correctness of entries, it is advisable that 
a trial balance be taken from the ledger at the end of each month. 1 
INSTRUCTIONS FOR OPERATING THE SYSTEM. 
RECORD OF GRAIN RECEIPTS. 
The record of grain receipts (Form Xo. 2, facing p. 20) is a consecu- 
tive record of the receipts of grain as shown on the storage tickets. 
Having entered the storage tickets consecutively for the period of a 
month, distributing the grain under the proper columns and record- 
ing it under gross dockage and net, in bushels and pounds, we may 
at the end of the month total this forni to arrive at the total grain 
receipts for the period. The totals of the record of grain receipts are 
then carried to the grain report opposite the words "receipts this 
period.* 1 As the business progresses from month to month, each 
month's total should be kept separate: and. at the same time, a total 
should be drawn down, including the current month and the previous 
months of the current year. This total is also carried to the grain 
report opposite the words ft gross receipts/' Under this system all 
grain is considered as theoretically stored regardless of whether 
it is purchased at the tinie of delivery or actually held in storage. 
This method is followed because it insures the proper accounting for 
every bushel of grain which comes into the elevator. 
i See U. S. Department of Agriculture Bulletin No. 17S, "Cooperative Organization Business Methods/' 
for further explanation of the value of trial balances. 
