Post Exchange Methods / A Manual for Exchange Stewards, Exchange Officers, Members of Exchange Councils, Commanding Officers, Being an Exposition of a Simple and Efficient System of Accounting Which Is Applicable to Large and to Small Exchanges Alike.

by Paul D. Bunker

b. Every account showing a credit balance is either a liability or a profit; a “personal” account showing a credit balance is a liability (something we owe), any sales account showing a credit balance is a profit.

1. Post Exchange Account. Another name for this account is “Net Worth”, or, if the Exchange is out of debt, “Surplus”. It is important that the status of this account be shown on every monthly statement exhibited to the Exchange Council. It is debited at the beginning of the month with the net worth of the Exchange on that date. Credit it with such decreases and debit it with such increases as will be shown on the “Surplus and Adjustment Schedule” on Form 32 and discussed in connection therewith.

2. Bills Receivable, Notes. Debit this account for the amount owed by any organization to the Exchange for Entrance fees, etc., and credit it via the cash book with the amount of payments received from such organizations.

3. Bills Receivable, Charge Accounts. Debit this account, as before described, with the total amount of charge sales made during the month, which amount is obtained from the Charge Accounts book. Credit this account with the total of the “Customers” column on the debit side of the cash book and also with the total of the “Credit” column in the Charge Accounts book.

4. Bills Receivable, Credit Coupons. This account has been exhaustively discussed under “Coupons”.

5. Bills Receivable, Enlisted Men’s Laundry. Debit this account at the end of the month with the gross amount of laundry bills contracted by enlisted men during the month. Credit it with the total of the cash book (debit) column in which are entered the payments by enlisted men for laundry work done. Also credit this account with whatever credits have been allowed for overcharges, damages, etc., these amounts also being charged (debited) against the Laundry account.

6. Check Account. See note under paragraph 4 above.

7. Bills Payable, Merchandise. Debit this account with balance due creditors on 1st of the month and with Cr. Purchase column of Purchase Record. Credit it with amount of creditors column in cash book, and with total of Dr. Purchase column of Purchase Record.

8. Exchange Building. If built and owned by the Government, this item is not an asset of the Exchange. If the building belongs to the Exchange, we debit this account with all amounts spent upon it for additions of any kind, but not for repairs, renewals, painting, etc. Credit this account with all depreciation voted by the Post Exchange Council, and debit this amount against the Depreciation Account.