RECORDS AND ACCOUNTS. 387 



Every farmer who can read and write can keep a record of 

 receipts and disbursements, without a very extensive knowledge 

 of bookkeeping. 



He should begin this work with at least one inventory at 

 the beginning of the year. 



The following inventory will serve to illustrate a very simple 

 method for keeping an account of assets and liabilities. 



INVENTORY, JANUARY I, 



100 acres with improvements @ $100 per acre ................... $10,000 



6 head of horses ............................................ 1,000 



8 cows and 4 head of young cattle ........................... 475 



5 sows and 34 shoats ........................................ 390 



20 head of sheep ............................................. 150 



900 bushels of corn ..................... ....................... 540 



300 bushels of wheat ........................................... 270 



30 tons of hay ................................................ 360 



550 bushels of oats .................... ................ ' ........ 220 



Tools and machinery ....................................... 850 



What are the total assets ? 



LIABILITIES. 



Liabilities are what a man owes on notes, accounts, mort- 

 gages and other forms of indebtedness. This must be subtracted 

 from his total assets to determine what he is worth. 



An inventory shows a farmer to have indebtedness as 

 follows : 



Mortgages on land .............................................. 3,500 



Mortgages on stock ............................................ 450 



Notes .... .................................................... 876 



Accounts .................... .................................. 1 ,324 



What are the total liabilities? 



PROBLEM. 



If a farmer's assets are $14,255, and his liabilities are $6,150 what 

 would he be worth after all debts are paid? 



