644 



THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



After having credited the account " By Inventory," the debit side will be 

 the larger, and the difference between the two sides will be a loss, as there 

 is always more or less " wear and tear " on the fixtures during the year ; 

 consequently, they are constantly depreciating in value. If our fixtures 

 are apparently in as good order at the end of the year as they were at the 

 beginning, we call them worth the whole amount for which the account 

 is charged, and allow it to stand untouched, calling it a Resource. Some 

 houses call the account " Store Fixtures ; " others call it " Office Fixtures/' 

 carrying all the store and office fixtures into the same account. 



EEAL ESTATE. 



97. Debit, at commencement of 

 business, for value of any Real Es- 

 tate we own, as lots and farms. 



98. Debit for all lots and farms 

 we buy. 



99. Credit for all lots and farms 

 we sell. 



100. EXPLANATION. We allow this account to stand untouched from 

 year to year and call it a Resource, unless the property increases or de- 

 creases in value ; in such a case we close it the same as we do the Mdse. 

 or Store Fixtures accounts. 



101. If we are in a wholesale business, we sometimes have customers 

 who become financially embarrassed or " hard up ; " and we, in order to 

 get good security for the payment of the amount due us, take from these 

 customers mortgages on any lots or farms which they may own. If these 

 customers cannot pay when these notes become due, we foreclose the mort- 

 gages, when, in some Counties, these lots and farms come into our possession. 

 We can then debit " Real Estate " for such lots and farms ; or, open an 

 account for each lot or farm, naming it after the former owner, as : " Bow- 

 park Farm," " Johnson Lot," etc., with address or location. The latter is 

 recommended as the better method. When these accounts are opened, 

 they are treated the same as the " Real Estate account." 



BUILDING. 



1OS. Debit, at commencement of I 

 business, for value of any buildings 

 we may own. 



