Farm Accounts. 

 DAY BOOK. 



129 



There are serious objections to this plan, both as entailing a 

 great deal of labour, and leaving one entirely in tlie dark as to 

 whether the items represented are paid for at the time, or are 

 credit accounts, or have in part been liquidated ; indeed I believe 

 it is based upon the principle, which may be correct in theory 

 but is quite erroneous in practice, that a farmer's business is 

 entirely a ready-money one. 



Without the aid of a Cash-book, and a great deal of trouble, 

 it would be impossible for an accountant to show the amount of 

 debts to or from the estate. Besides, in posting to the Ledger 

 we must gather our material from three books instead of one, or 

 two at most, which would be the case in the ordinary use of the 

 Journal. The Journal which is kept at tlie Roval Agricultural 

 College combines three books, which are generally kept separate 

 in mercantile business : — tlie Day-hook, recording from day to- 

 day every transaction, whether cash or credit, that takes place 

 in the day ; — the Journal Proper, in which every item is jour- 

 nalized, or prepared for the Ledger, a small column on the left- 

 hand side being left on purpose for the Ledger headings ; — and 

 a Cash-book ; two out of the three money columns representing- 

 the Dr. and Cr. sides of a common Cash-book. 



The advantages of using a book of this kind, over either tlie 

 common Journal or the distinct books for sales and purchases, is, 

 I think, very great. In the first place, the distincti(/ii between a 

 cash and credit transaction is seen at a glance, on account of the 

 entries being made in different columns ; and, secondly, every 

 item that goes to make up the Ledger Avill be found in this 

 book, and nothing else but this one book is required to com- 

 plete a farm account. It is less probable that any item will be 

 missed and remain unposted, or that any item will be placed 

 to a wrong account. As fast as the entries are transmitted into 

 the Ledger the number of the folio is placed on the extreme 



VOL. XIX. K 



