359 



columns agree. When the Dr. side of an account is greater than 

 the Cr. side, deduct one amount from the other, and enter the 

 difference in the Cr. money column, prefixed by the words " By 

 Balance." In like manner when the greater amount exists on the 

 Cr. side of an account, the difference between it and the amount on 

 the Dr. side is entered to it prefixed by the words " To Balance," 

 which, when added up, the columns of figures will be found equal. 

 This will be understood on reference to the cash account where a 

 balance of ^53 55. 6d. appears, showing the difference between 

 the Dr. and Cr. sides ; that is, the expenditure, or Cr. side, is less 

 than the receipts, or Dr. side. In working plant account the entries 

 on the Dr. side amount to ^58, the cost of the implements and 

 expenses in repairing ; on the Cr. side appears the entry " by valua- 

 tion ^52 45. od." which represents the value of the working plant 

 on the 3ist December ; on the same side also appears "by profit 

 and loss, $ i6s. od." this means the depreciation in value of work- 

 ing plant. It is a loss. Stock account the Dr. side entry " to 

 stock" is the value of stock on the ist January, ^122, added to 

 which is ^25, an expense incurred in maintenance, the two amounts 

 added will be found to amount to .147. The Cr. items represent 

 the product of stock sold, and the value of stock in possession 

 total amount, ^153 us. od., leaving a balance of 6 us. od. in 

 favor of the Dr. side, which means so much gained in stock, the 

 entry for which, on the Dr. side, will be " to profit and loss, 6 

 us." Crop account the Dr. side represents the expenses, and the 

 Cr. side the sales and the value of crop unsold. It will be per- 

 ceived that the Cr. side is greater than the Dr. side, the difference 

 between them being ^73 55. od., which is so much gained. The 

 balancing entry is " to profit and loss, ^73 53. od." The improve- 

 ment account the Dr. side shows the amount expended in fencing, 

 draining, and clearing; total, ^51. The Cr. entry "valuations, 

 ^45 i8s." represents the value of such at the end of the year. There 

 is a depreciation in the value amounting to ^5 2s. od. The second 

 entry is " by profit and loss, $ 2s. od." Profit and loss account 

 the Dr. entries in this account show the losses in cash (discount), i ; 

 working plant, $ i6s. od. ; improvements, ^5 2s. od. ; and 

 amount of household expenses, ^41 los. od. The Cr. entries show 

 what has been gained in stock and crop, and it will be perceived 

 that the Dr. side (loss) is less than the Cr. side (gain) by 26 8s. od., 

 this amount is added to the Dr. side for balancing purposes " to nett 

 gain, 26 8s." Balance account the Dr. side shows on December 

 3ist, 1895, land ^200 ; the value of live stock, crop, working plant, 

 and improvements (see valuation book) equal to .223 35. od. ; and 

 cash in hand (see cash account), ^53 55. od ; total on Dr. side, ^475 

 8s. od. On the Cr. side is the entry 4t by capital," that is, the amount 

 of capital possessed on the ist January, 1895. The difference 

 between the two sums is 26 8s. od., in favor of capital. The entry 

 on Cr. side is " by balance, 26 8s. od." 



