FIFTEENTH ANNUAL YEAR BOOK— PART X 701 



Against the machinery account all costs of repairs to machinery and 

 tools, all harness items, and the purchase of new implements or tools 

 should be charged. This account should be credited with all receipts 

 from sales of old machinery or machinery rented to neighbors. Under 

 the work on machinery will be entered "Getting new plow points," "Re- 

 pairing roller," "Storing away machinery," "Making new whiffletrees," 

 and other similar items. 



Such work as manuring may be charged against the crop to which it 

 is applied, or an account may be kept with manure and the total cost of 

 manure, including the cost of hauling, may be distributed to the different 

 crops at the end of the year. 



In this system no account is kept with "General expense." Nearly all 

 items of this kind can be distributed as they occur. For instance, if a 

 telephone is kept for the purpose of directing the hired man, the expense 

 is charged direct to the labor account. If the telephone is kept for per- 

 sonal and general farm use, it may be charged partly to the personal and 

 partly to the real estate account. Such items as postage stamps, if small, 

 may be charged to the farm account, but if a large number are used for 

 one enterprise some of the purchases may be charged to this one enter- 

 prise. 



It is nearly always possible to scatter the charges to different accounts 

 as they occur. A general expense account, if found to be necessary, 

 should be kept very small. 



MISCELLANEOUS NOTES. 



There are many miscellaneous notes which it is desirable to keep in 

 the same books with the accounts. Following are some of the entries 

 which have been inserted by farmers and which are especially handy for 

 later use. Sometimes they are merely written on the page where they 

 seem ta belong; at other times they are kept by themselves in the back 

 of the book: Date of "last killing frost in spring;" date of "first killing 

 frost in fall;" date of "death of [horse or cow];" "height of hay [or en- 

 silage!" at a certain date. 



Other miscellaneous records may be kept, such as herd records, maps 

 of ditches, and maps of the farm, showing the crops for each year. These 

 are not necessary in connection with the cost accounting, but may be 

 kept if the farmer desires, and they will often prove useful. 



CLOSING THE ACCOUNTS AT THE END OF THE YEAE. 



Considerable time is required to close the set of accounts. However, 

 this figuring should come in the winter at a time when other work is 

 usually slack and when the weather is more favorable for working in- 

 doors than out. A definite order should be adhered to in closing the 

 accounts. This order may be as follows: 



(1) The first step is to take a final inventory in the same manner as at 

 the beginning of the year. Thl.s inventory should Include all bills that other 

 persons owe the farmer and all bills which the farmer owes to other per- 

 sons. 



(2) The list of bills payable should be inspected and any ttems that have 

 not yet been charged should be charged to the proper accounts. For instance, if 

 $15 for labor is still due the hired man at the date of closing-, this item 

 should be entered as a charge against labor. 



