64-2 THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



mence business, if we have any manufactured goods on hand for the then 

 present worth of those goods. We debit this account at the end of the 

 year for what the goods cost us which we manufactured during the year. 

 We ascertain what the goods cost us in the following-described way : 

 We open separate accounts at the beginning of the year, for all such ar- 

 ticles as we are going to buy to use in the manufacture of our goods ; and 

 during the year, whenever we buy anything to use in the manufacture of 

 our goods, we charge the articles to the respective accounts to which they 

 belong. At the end of the year we take an inventory of each of these ar- 

 ticles, to ascertain the value of what remains unused, after which we 

 credit each of these accounts " By Inventory," in red ink, for the respec- 

 tive amount on hand ; we then find the difference between the two sides 

 of each account, and credit it " By Manufacturing," in red ink, for that 

 difference the difference being the amount of that article actually used 

 in the manufacture of the goods. We now close the account and bring 

 down on the debit side, below the closing lines, the amount remaining un- 

 used for the beginning of the new year; after which we carry over 

 to the debit side of the "Manufacturing account" the amount used or 

 lost on this " Article account " all the accounts of articles used in the 

 manufacture of the goods being treated in the same manner. For exam- 

 ple : If we were manufacturing woollen goods, we would keep a " Wool 

 account/' an " Oil account," a " Dye Stuffs account," etc., etc. At the end 

 of the year we would ascertain how much of each wool, oil and dye 

 stuffs we had on hand still unused, and would close the accounts accord- 

 ing to the instructions above, carrying amounts lost on such accounts to 

 the debit side of " Manufacturing account," instead of to " Loss & Gain," 

 We keep a " Machinery account," and debit it for the cost of all machin- 

 ery we buy. During the year we charge this account for all repairs on 

 the machinery for which we have to pay, and at the end of the year we 

 approximate the value of the machinery, allowing something for the 

 " wear and tear," after which, we close this account the same as we do the 

 others, carrying the amount lost to the debit side of the " Manufacturing 

 account." We keep a " Labour account," in order to show the amount 

 paid our employe's for making the goods, which account we also close and 

 carry to the debit of " Manufacturing." The " Freight and cartage ac- 

 count " may also with propriety be closed and carried into the " Manufac- 

 turing account," instead of to " Loss and Gain." After all of these ac 

 counts have been carried into the " Manufacturing account," we credit 

 this accout " By Inventory/' in red ink, for the present worth of the 

 manufactured goods we have on hand. The books are then closed the 



