DAIRY COMPANIES

Evening Post, Volume CXIII, Issue 143, 21 June 1927, Page 6

DAIRY COMPANIES

HOW ACCOUNTS ARE KEPT

At the meeting of. the Wellington Accountant Students' Society on Thursday last (Mr. F. 11". Eass presiding), -Vtr. W. G. Walkley, public accountant, Hawora, delivered an address on "Dairy Company Accounts."

The lecturer dealt with the subject mainly from the viewpoint of the dairy company secretary, and outlined the transactions from the timo the supplier delivered the milk to the factory. He explained that tho accounts of both proprietary and co-operative companies were similar in every respect, except that the share calls in the later case were usually deducted from the proceeds of the sale of dairy produce. In computing the pounds of Vjuttcr-fat/the weight of milk was multiplied by the percentage "of butter-fat in the sample of milk tested, and that the return usually covered a period of ten days. The cheese,' on the other hand, was graded after going into tho cool store by the Government grader, and that in addition to the monthly advance on tho 20th of the month, the factory aimed at making a supplementary payment during the season with a final payment or bonus, at tho end of the year in June.

The lecturer described in detail the monthly milk statement forwarded to the supplier, amUoutlincd the debits to tho customer by way of supplies of goods drawn from the factory. He emphasised the importance of the sup-plici-y journal, which took the place of a ledger account, and .stated that tliis journal was written up i'vom (lie monthly statement, and was balanced ;;;;rj-.st the returns from (he fat-fory jiinn-'gers' statements.

He dwelt on the various methods of disposal of butter and cheese before the operation of the Control Board, such as the sale free on board steamer, consigning to London < or sale locally through an agent, but that under the present system of control, advances by way of progress payments were made uy the board against store warrants. Mr. Walkley emphasised the importance of the butter-fat register and the furnishing to tho supplier the total butter-fat produced for the season.

At the conclusion of the lecture, Mr. G. _M. Pottinger, accountant of the Dairy Control Board, gave an excellent exposition of the financing of the dairy produce under the Control Board..Both addresses were considerably enhanced b;- the specimen forms and accounts distributed to members to enable them to follow the practical side of the lectures. Both Mr. Walkley and Mr. Pottinger answered questions, and were accorded hearty votes of thanks by acclamation on the motion of Mr. 11. E. Grcig, seconded by Mr. T. G. Harle.