3o8 Journal of Agriculture. [lo May, 1909. 



withdrawn must be added to the profit or deducted from the loss, as the 

 case may be, so that the true earnings of the business may be seen. 



Though the foregoing is a ready method of ascertaining his profit or 

 loss as a whole, it is not by any means considered sufficient as a guide to 

 the management of the different branches of his business. To assist him 

 he should have a record of his profit or loss on each branch. If 

 he follows out the examples and directions given he will have such a 

 record and will be able to see which branches are paying him and which 

 are not. The number of columns required will depend on the number of 

 branches in the business. 



Having completed the balance-sheet ("A"'), he should make the opening 

 entries in his book as shown in Statement " B " (pages 306 and 307). The 

 cash receipts and payments should be entered in the columns set apart for 

 them and each item extended under its proper head of account. 



Column I is used to enter the cash on hand or at the bank at the coni- 

 mencement of the period {a) and all subsequent cash receipts {b), and 

 column 13 to record all the cash payments for the period {c) and the cash 

 on hand or at the bank at the end of the period {d). (This item is brought 

 down to the next period.) 



Columns 2, 3, 4, 5, 6, 7, 8 and 9 are used for entering the opening 

 balances from the liabilities side of the balance-sheet {c) and the extension 

 of the cash receipts (/), and the closing entries {g). 



Columns 14, 15, 16, 17, 18, 19, 20 and 21 are used for entering the 

 balances taken from the assets side of the balance-sheet {h) (except the 

 cash balance which has already been entered in the cash column i) {a), the 

 extension of the subsequent cash payments (i), and the closing entries (/). 



Columns 10 and 11 are used for entering the opening balances taken 

 from the balance-sheet (k) and all subsequent cash receipts for the sale of 

 such items (/) and the closing entries (m). 



Columns 22 and 23 are used for entering the opening balances taken 

 from the balance-sheet {n) and all subsequent cash payments for the 

 purchase of such items {0) and the closing entries {f). 



Column 12 is used for the capital at the commencement of the period 

 taken from the balance-sheet {q) and the extension of any profit (r). 



Column 24 is used for entering anv withdrawals of capital {$) (such 

 as private expenses and the farm produce consumed in the house) and the 

 balance between it and its corresponding column i:;. (This balance is 

 brought down in column 12 for the next period.) 



Should the balances fall on different sides from those shown in state- 

 ment "B," the same principle applies and the balances are brought down 

 on different sides. 



(JPENING AND CLOSING ENTRIES. 



Rcvoinc Income and Outlay (crops, hor.ses, cattle, sheep, pigs, poultry, 

 dairy and miscellaneous). — To find the profit or loss on any part of the 

 business it will be necessary to ascertain (i) the total cost of the purchases 

 for the period, (2) the amount of the sales for the period. (3) the value 

 of the stocks at the beginning of the ])eriod, (4) the value of the storks 

 on hand at the end of the period. 



As only the cash receipts and payments for the period have been re- 

 corded in the accounts, it will be necessary to take into consideration the 

 Debtors and Creditors at the beginning and at the end of the period. If 

 this be done the value of the Sales and Purchases can be accuratelv ascer- 

 tained. 



