(358 THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



185. Directions for closing the Taxes account at the end of the 

 year: 



1st. Write on the credit side, in red ink, " By Inventory," for approxi- 

 mated value of unexpired Taxes. 



2nd. Find the difference between the two sides of this account, and 

 write on the credit side, in red ink, " By Loss and Gain " for amount of 

 this difference, which will make the account balance. 



3rd. Rule the closing lines, and write the total amounts between these 

 lines. 



4th. Write on debit side of this account, in black ink, below the clos- 

 ing lines, " To Inventory " for this amount of unexpired Taxes, for be- 

 ginning of the new year. 



5th. Write on the debit side of Loss and Gain account, in black ink, 

 " To Taxes " for amount of loss as found in " 2nd." 



186. EXPLANATION. We debit Taxes for all cash we pay out for taxes 

 on our property. At the end of the year we approximate the value of 

 taxes still unexpired, and call that approximated value a Resource ; con- 

 sequently, we close the account as per above directions. 



INSURANCE. 



187. Debit for all cash we pay 

 out for insurance on goods and 

 buildings. 



188. CLOSING AND EXPLANATION. The directions for closing the In- 

 surance account, and also the explanation, are exactly the same as in the 

 Taxes account ; consequently, for directions for closing and for explana- 

 tion, we refer to 185 and 186, and while reading same, substitute " Pre- 

 miums on Policies " where we find " Taxes." All business houses do not 

 approximate the value of unexpired Taxes and " Premiums on Policies " 

 at the end of the year, but call the whole amount a loss at once. 



