910 



THE FARMERS HANDBOOK. 



The following diagram may serve to illustrate the method of journalising 

 the first three divisions : — 



Dr.for Receiving) Cr. (or Giving) 



J sell to PERSONAL ACCOUNTS Sells me 



1 pay to ^ -^ ^ __.Pays me 



Receipts or /y nMCV A rrmiMT«V Payments or 

 Incomings S MONEY ACCOUNTS -.Outgoings 



The Journal. 



The Journal is ruled with the following columns : — " Date," " Name of 

 account debited," " Name of account credited," " Ledger folio" (or page on 

 which the corresponding entry is posted in the Ledger), " Amount of cash 

 (or value) debited," " Amount of cash (or value) credited." 



The method of writing up the Journal may be thus illustrated : — 

 Diary entries: — Jan. 1, 1920 — Bought 700 corn bags atTOd. each, from> 

 T. Brown. Jan. 17, 1920— Paid for bags by cheque. 

 Being for crops, they are charged to that account. 



In actual practice, as payment is made "before the end of the month, the 

 transaction can be treated as a cash one, and the entry would then be stated 

 as "Crops Dr. to Bank," without involving the use of Brown's name. 



Additional value may be given to the Journal by briefly describing the 

 transaction : — 



£ s. d. £ s. d. 



Crops, Dr. 29 3 4 



To T. Brown ... 29 3 4 



700 corn bags at lOd. 

 Where the journal is compiled from rough memoranda, and not from a 

 regularly-kept diary, this is distinctly advantageous. 



Reference has already been made (see page 908) to the necessity for analys- 

 ing the various receipts and expenses, to ascertain the accounts to which the 

 amounts should be charged. The storekeeper's bill, if paid as soon as due, 

 could be journalised thus: — 



Dr. Cr. 



£ s. d. £ s. d. 

 Household (groceries) ... ... ... 2 12 



Crops (seed and twine) 1 10 



Implement (shares, &c), Dr 18 



To Bank 5 



