Store Department.
If a retail store in conducted in connection with a bakery, all goods taken from the shop should be charged to Store Account at the regular wholesale prices, and credited to the bread or cake department. Charge should also be made to Store Account for clerk salary attending store, and should also be charged for its proportion of light and fuel, office salary, and other expenses, and also for all merchandise purchased from the outside to be sold in the store. The credit to this account will be the daily sales as shown by the cash register.
Stable Feed.
A stable feed account should be kept to which is charged all items of hay, grain, etc., used for horse feed. At the end of the month the balance of this account can be charged into Stable Expense Account. The object in keeping this account separate is for the purpose of arriving at the cost for feeding a horse for a given period, which can be done by dividing the number of horses into the total charges to this account.
Stable Expense.
Charge to this account items of medicines, veterinary bills, shoeing bills and stable man’s wages, and all other items of expense belonging to this account. At the end of the month charge the balance in Stable Feed Account to this account, which will then show the entire cost of operating the stable.
General Accounts
Ledger accounts should also be kept of Buildings, Harness, Horses, Machinery, Fixtures, Ovens and Wagons, and a certain amount should be credited at the end of each month to each of these accounts to cover shrinkage, the total amount of these shrinkages being charged to Expense Account. Ledger accounts should also be kept of Insurance and Taxes, charging all bills for these items to these accounts, and crediting these accounts at the end of each month with their monthly pro ratio for these items, charging at the same time this pro ratio to Expense.