COOPERATIVE ORGANIZATION BUSINESS METHODS. 3 
DOUBLE VKKSi:* 8IKQLE I XI It Y. 
For records of a cooperative organization the double-entry system 
is the only one worthy of consideration. Accounting for anybusiness 
based on single entry should be discouraged. The double-entry sys- 
tem is the only one affording a complete check. 
; ' Single entry." as one well-known authority says, "is the record- 
lug of business transactions without regard to scientific principles. 
The term is rightly applied to any method of recording business 
transactions other than by the double-entry method. It is unscien- 
tific because it is incomplete and therefore can not reflect the true 
condition of affairs or the results from operations." 1 
Double entry is the scientific method and provides a complete 
record of business transactions in such a manner as to show the 
effects of such transactions upon the assets, liabilities, capital, sur- 
plus, and revenue, and also to show the expenses of the business. 
The equalization of debit and credit in every transaction, which 
is secured by all double-entry records, guarantees the mathematical 
accuracy which is a most important feature. 
BOOKKEEPING POSSIBLE WITH FEW BOOKS. 
Only two books are absolutely necessary for a complete and sys- 
tematic record of the financial transactions of a business, the journal 
and the ledger. The journal presents the record of business trans- 
actions in chronological order, while the ledger shows the same 
classified as to the respective accounts. The great number of books 
now used as accounting records are but forms of these two books, 
and the principles of double-entry bookkeeping apply in both cases. 
REQUIREMENTS OF A SYSTEM FOR A COOPERATIVE ORGANIZATION. 
The first study of a manager should be of the business contem- 
plated and of the best methods for carrying out the objects of the 
organization. Then a study should be made of the best method of 
recording the business transactions properly. After such a study, a 
complete business system should be worked out. 
A cooperative organization acts as the agent of the grower in the 
marketing of his product, and a system for such an organization 
must not only contain the usual accounting records showing the 
assets and liabilities, profits and losses, and the receipts and dis- 
bursements of cash, but it must show a clear record of each grower's 
shipments from the time of delivery until payment has been made. 
The system must be capable of taking care of the maximum volume 
of business during the height of the shipping season and provide 
1 Bentley, Harry C. The Science of Accounts. New York, Ronald Tress. See p. 17. 
