HOH- TO KEEP FARM ACCOUNTS. 



Less 25% di.^count for "wear 

 and tear"' of five years' use. .. 183.00 



$ 549- 00 



One Binder 5 100.00 



One Corn Harvester 100.00 



$ 200.00 

 Less 5% for one year's depre- 

 ciation 10.00 



$ 190. CO 



RECAPITULATION. 



Production $1398.45 



Feed 25.86 



Implements 739. 00 



$ 732.00 



Total $2163.31 



36. IN VENTOHV \A IJ'ATION.— A.s we liave already stat- 

 ed Fox values liis live-slock ;it wiiat it would hriiiL;. if sold the dav 

 he takes bis inventorv and lids is also true of tlu- jtroduce lie lias 

 jrrown; but tlie I'eed lie niusT tiiiure at wli«t it cost him. I'rnni 

 his implements he deducts 25 per ceut. for "wear and tear" of five 

 years usajre. As the Kinder and Corn Harvester were bought in 

 1900 he only deducts 5 per cent, froin 1 hem- -both itradically beiu;; 

 as jiood as new. Some manufjuiiiiers deduct 10 per cent an- 

 nually for the depreciation of their machinery but when jrood care 

 is taken of farm imiplcments tlu'i'e is sctircely need for sucdi a 

 deduction. The owner must of course decide for himself what 

 the depreciation amounts to. 



37. STATEMENT OF RESOUKCES AND LIAKIIJTIES.- 

 Fox now has his inventory taken. He knows what he has on his 

 farm and that if sold to(hiy it would nninunt to •?2.1(!o.:^l. Howeve'". 

 before he can bejiin his books he uiusi know not only this; but tht- 

 exact amount of everythinj; else he owns, what he owes and also 

 what is owinfi him. The easiest way to do this, is to make a state- 

 ment of his IJesources (what he ha.s) and Liabilities (what he owes. 

 To jjet at this, his farm known as"('lovermead" consisting: of 120 

 acres cost him f^O.OO an acre. He still owes on it J;2.0(t().(Mt which 

 is in four notes of f.'^tMI.OO each, payable annually with interest at 

 ♦J per cent. These notes are secured by Mortpajje, and an* held by 



46 



