486 THE HANDBOOK FOR PRACTICAL FARMERS 



bilities have been entered in the accounts, if $400 is paid out for 

 a tractor, entries are made in the Cash and Equipment accounts 

 as follows: 



Cash 



19 



Feb. 16. F. Lynn, 1 tractor. . $400.00 



When forty dollars is paid for labor, the cash is again reduced 

 and the cost of labor is increased ; hence forty dollars is placed 

 on the right side of cash and left side of an account called labor. 



It may be stated as a general rule that when any property is 

 parted with, its value is recorded on the right side of the account 

 bearing a title to indicate the property so parted with. At the 

 same time, the same amount is recorded on the left side of the 

 account that shows the reason for parting with the property. 

 Thus, if one pays fifty dollars for household furniture, for 

 groceries or for Christmas presents, an entry for fifty dollars is 

 made on the right side of cash and the left side of Household 

 account. These show respectively the property parted with and 

 the reason therefor. 



Again, if one pays five hundred dollars in reduction of a mort- 

 gage, the amount is shown on the right side of cash and left side 

 of mortgage payable accounts. 



A second general rule to follow in recording one's transac- 

 tions is that when any property is received its value is recorded 

 on the left side of the account bearing a title to indicate the 

 property received. At the same time, the same amount is re- 

 corded on the right side of an account that shows the reason for 

 receiving the property. For example, if one receives three hun- 

 dred dollars cash from the sale of hogs, the entry is : 



