COOPERATIVE ORGANIZATION BUSINESS METHODS. 21 
3. Bookkeeping may be defined as the systematic and chronological 
recording of financial transactions. 
I. The double-entry method is the best for keeping any set of 
books, as it allows an equalization of debits and credits which affords 
a complete check on all entries. 
5. The great number of books now used in recording financial 
transactions are forms of the journal and ledger, and the principles 
of double entry should apply to all books used for the recording of 
financial transactions. 
C>. It is of the utmost importance that a trial balance be taken each 
month. The trial balance is the best method of proving the mathe- 
matical accuracy of the books. 
7. A convenient method of preserving the trial balance for future 
reference is that of using a trial-balance book. 
8. Essential requirements for a system of accounting records for a 
cooperative marketing organization are — 
(a) A complete set of financial records showing the business trans- 
actions and the results thereof. 
(b) A record of each member's transactions with the organization. 
(c) Capability of taking care of a maximum amount of business 
during the shipping season. 
(d) Capability of returning to the members the proceeds from 
their products within a reasonable time. 
(e) Clear pooling records when kept, so that any discrimination 
can be shown quickly. 
(/) Auxiliary records which will give statistics and valuable in- 
formation for the conduct of the business. These records must be 
accurate. 
9. No two cooperative organizations are exactly alike. It is neces- 
sary, therefore, that a system of accounts, to be most successful, be 
devised to fit the business for which it is intended. 
10. Care should be exercised in devising columnar forms, in order 
that columns which will be used rarely are not added, making the 
forms cumbersome. All statements showing returns or ledger ac- 
counts to groAvers should be so headed and constructed that they 
may be perfectly plain and intelligible at first glance. 
II. There are numerous labor-saving devices for reducing the cost 
of accounting which may be used to great advantage by cooperative 
organizations. 
12. Every cooperative organization should have an accountant who 
is thoroughly familiar with the business, in order that he may con- 
duct the office properly. 
13. Minutes in proper form of all stockholders' or members' and 
directors' meetings should be kept. 
