p Subtract the Cost of Goods Sold from Net Sales and enter the remainders in the spaces for “Gross Profit”. Check results as before.
The lower part of this form is made out as follows:—
a Under “Cash Discounts” (unless credited to Office as before explained), enter the total of the Discounts column in the cash book.
b Cash in excess of daily checks is self explanatory.
c Under “Goods Sold on Consignment”, should be entered all such sales actually made during the month.
d Miscellaneous credits is self explanatory, being for such items as junk, receptacles sold, etc., as are not credited through the stock records.
e Entrance fees cover all payments by organizations joining the Exchange.
f Interest on Bank balances is self explanatory.
g Lost Accounts collected refers to amounts that have previously been dropped from the books as lost, but have afterwards been collected.
h Under “Income not otherwise accounted for”, is entered the amount that will make the books balance. As it is impracticable to give precise weights on bulk merchandise and as mistakes will sometimes occur, the books will never balance exactly and all discrepancies are thrown into this item. As an example, suppose we unintentionally give short weights on our sales of, say, crackers. At the end of the month, we will have more money on hand than our sales would call for, and such excess is taken up under this heading. If, as sometimes happens, there is a deficit (for example, caused by melting and wastage of ice) it should be taken up under the “General Expense” side of this form. It should be noted that this item cannot be filled in until the General Balance Sheet is made out.