BOOK- KEEPING FOR FARMERS. 



911 



The Ledger. 



This is the most important of the books of reference, as it contains 

 an abstract of every transaction recorded in business. It is ruled with 



columns for " Date," " Name of corresponding Cr. entry," ''Journal folio" 



and " Amount" on the Dr. side, and a similar number of columns on the 

 €r. side. 



Dr. . (', 



Date. 



Name of corresi>oiidiiis 

 Cr. entry. 



Journal 

 folio. 



.. t Name of corresponding 

 uate - Dr. entry. 



Journal 

 folio. 



Every account mentioned in the Journal requires a Ledger account under 

 its own heading. In actual practice, these would appear on various pages, 

 allotting say ten to the bank, twenty to stock, two to horse, and so on, 

 according to the number of likely transactions. An index is required, and 

 i t is desirable to classify them as already stated. 



A FIRST YEAR'S OPERATIONS. 



An elementary example of a year's business dealings is here given to 

 ■explain the foregoing principles. The transactions are really a summary 

 of a diary, and thus no dates are mentioned. 



J. Bull starts in 1920 with a capital of £1,000, which is banked. He buys 

 horses for £150, and stock for £400 cash, together with implements from the 

 Sydney Plough Co., for £50 (not paid). He sells stock to James for £300 

 (not paid), crops for £100 cash, and butter for £10 cash. £120 is paid as wages, 

 and £80 as rent. Valuations at the end of the year are : — Stock, £300 ; crops, 

 £60; plant, £40; and horses, £140. Interest charged on capital at 5 per 

 cent, per annum. These transactions would be journalised as follows: — 



Cr. 



Ledger 



f'olio. 



1920. Bank, Dr. 



To Capital 

 Horses, Dr. 



To Bank 

 Stock, Dr. 



To Bank 

 Plant, Dr. 



To Sydney Plough Co 

 James, Dr. 



To Stock- 

 Bank, Dr. 



To Crops 

 Bank, Dr. 



To Dairy 

 Wages, Dr. 



To Bank 

 Rent, Dr. 



To Bank 

 Interest, Dr. 



To Capital 



Entries need not be made of the valuations. 



