^ 32 Farm Accounts. 



Sold and received of John Lane for 20 quarters of wheat. The 

 Ledger headings are simple : in the first case, Manui'es Dr. to 

 Cash — in the second case, Cash Dr. to Wheat. 



The name of the party to a bargain in a ready-money transac- 

 tion never goes beyond the Journal, because it is not required. 

 The sale or purchase has been recorded under its proper heading 

 in the Ledger, and cash has been debited or credited, as the case 

 may be. 



Many of the farmer's transactions will in reality be of this 

 simple nature, and, in cases where payment is customary in a 

 week or so, it is not Avorth while to make credit transactions of 

 them. The entry may remain in the pocket memorandum-book 

 until the money is paid, when it may be entered in the Journal, or 

 rather the Cash-book, as a ready-money business. In the case of 

 a credit account, say for the sale of 20 sheep, to T. Jones, T. Jones 

 (or Sundry Persons, if he is only an occasional purchaser) is 

 indebted or debtor to Sheep, which are credited, andjwhen in due 

 course the money is paid, the entry is merely to T. Jones, and 

 the heading Cash Dr. to S. Persons. 



Jones's account in the Ledger, which was debited at the date of 

 purchase, is now credited at the date of payment and balances. 

 The eye separates at one glance the credit from the cash transac- 

 tions, and he must be very stupid indeed who makes any mistake 

 as to the columns. 



As the cash account is kept so perfectly distinct in the Journal, 

 it is considered unnecessary to repeat it in tlie Ledger, and this 

 accounts for there being no folio numbers against Cash. With 

 regard to the folio numbers, it is vv^orthy of notice that when they 

 I'efer to a debtor account they are placed above the line, and 

 under the line when the item appears on the creditor side of the 

 Ledger heading which they represent. 



The Ledger. — This is the third hook that requires our notice, 

 and it is a verj^ important one, enabling us to divide our transac- 

 tions under various heads, which the diversified nature of a 

 farmer's business appears to require. 



Without the use of this book we could only say by reference 

 to the Cash-book that such a sum of money has been spent and 

 so much received, and that from the valuation more or less value 

 of stock remained on the ground, therefore the total profit or loss 

 was so much — a very incomplete sort of balance-sheet truly, for 

 Ave must always bear in mind that the great object of accounts 

 is to show the separate returns upon the different branches of a 

 farmer's stock and crop. 



We may increase or diminish the number of heads of 

 account at pleasure. Thus, for instance, a man may place under 

 one general licading all kinds of corn sold, whilst another will 



