HOl-y TO KEEP FARM ACCOUNTS. 



a local hank — the I'iist National. He has also ?41.'{.00 cash on 

 liani] and a note of fTO.OtI in his favor which is (inc .Inly 15, 1901. 



38. Iteniizinji- the above, he places under "llesources" (1) 

 the cash value of his farm. (2) rroductiou (see inventory) which 

 represents his live-stock and the products of his farm on hand ar 

 this tim/e. (3) Implements (see inventory). (4) "Feed" (see in- 

 ventory) and by "IVed" he means what he has had to buy — not 

 that which he has urowu. (5) Bills Keceivable (n(>tes owinjr him) 

 and (()) the Cash he has on hand. These items are all "Resources" 

 because if necessary he could sell ihciu for the amount set aside 

 each and thus realize that much cash for them — hence, a resource. 



39. Under "Liabilities." he |)laces Bills Paj-able (notes he 

 owes). To better understand this, let us set down these items and 

 amounts under their respe( tlve heads, so that it Avill be perfectly 

 clear. 



RESOURCES. LIABILITIES. 



40. Xow. in looking at the statement above you will see one 

 item under "Liabiliries" about which nothini;' has yet been said. 

 It is Net Worth, and is simply this: -I'ox's total Resources anionni 

 to $12.24*1. HI. 'I'akiiiu fruiii ii I he total anionni of his debts 

 (12.000.00) there remains tin- difference of ?10.240.81. or his Net 

 Worth. The forc^oinji is what lN>x must know before he can open 

 his Led;.Mr. It is what you nrust al.so know before you can open 

 an account with your farmst(»ad intelli;:ently. 



41. I'ox niRisi next make the opciiint; entries in his book of 

 record and as he is a practical farmer, he wants his accounts ti> 



47 



