The system .recommended provides for the use of a number of
books, preferably loose-leaf records in separate binders. In this con-
nection there have been advocates of simple systems, where all the
records are kept in one book, but experience has demonstrated that
there is considerable difficulty in posting from one sheet to another
in quite a different part of a book without making serious errors.
Furthermore, with a little experience it will be found more convenient
to have the various records in their own binders. In fact, in large
chambers of commerce two or more employees may be assigned specific
jobs in connection with the accounting and each have his own records.
It will be noticed, for example, that in this system it is proposed
that the cash book shall be in loose-leaf form and that the Cash Receipts
Record shall be independent from the cash disbursement record, known
as the Check Register, and in most cases the two may well be kept in
separate binders. Likewise, the Voucher Register will be a book by
itself. So will the General Ledger and so will the Journal. These
compri ie the principal books that will be required.
CLASSIFICATION OF ACCOUNTS.
The next important point to which attention is directed is a well
defined Classification of Accounts. A model classification is a part
of the system recommended and appears as Appendix A. It will be
observed that a comprehensive numbering system has been devised and
on first inspection it may appear that this numbering system is elaborate
nd unnecessary. There is this to be said for it: In construction it fol-
lows in principle the so-called decimal classification, which, as is well
known, is the one employed in all libraries. The reason for this is to in-
cure the logical arrangement of accounts. Previously, it was the practice
in many cases to arrange accounts in the General Ledger and in the
Trial Balance, alphabetically by the first letter of the first word in the
account. There is nothing to commend “this arrangement, except
facility in quickly locating an account—as say, Salaries. The logical
classification under a numerical system, however, is quickly memorized
by those who are employing it, and it has the further advantage of
arranging the accounts in the order in which they are needed in the
preparation of financial statements.
An added advantage should be noted. Provision is made under
this numbering scheme whereby any account may be still further
divided also in a logical manner. Again, new accounts may be incor-
porated without disruption of the numbering scheme.
Tt was suggested in the introduction of this. pamphlet that when
chambers of commerce throughout the country ultimately come to
15