HOir TO KEEP FARM ACCOUNTS. 



be as simple as cau be and ret be accurate. With this in view, 

 he decides to have as few accounts in his Ledger as possible — to 

 use but one book of record — setting aside the first six pages for 

 the inventory, the next forty-eight pages for the Gash account for 

 the year, and the balance of the book for his accounts in the 

 Ledger proper. But before any accounts or entries can be made 

 in the Ledger, they must appear on the Cash Book and the 



42. (,'ASH BOOK in its original form was simply the cash 

 account. It was debited for the cash received and credited for 

 all cash paid out — the difference between the debit and credit 

 sides showing exact amount of cash on hand. But on the farm 

 the Cash Book must answer for a Day Book or Journal as well, 

 and all transactions appear in it. As explained before, in double- 

 entry bookkeeping all accounts have two sides — a debit and a 

 credit. The left-hand side is the debit side and the right-hand is 

 always the credit «ide. Remember, then, that he following rules 

 are absolute for the Cash Book. 



LEFT-HAND OR DEBIT SIDE. 



On this side enter all cash you re- 

 ceive. 



RIGHT-HAND OR CREDIT SIDE. 

 On this side enter all cash you pay 



out. 



43. Now the sides of the blank book that you are going to 

 use as a Farm Ledger, are ruled exactly alike and you will see by 

 referring to the example below that the first column is for the date, 

 the second for the page of the Ledger to which the entrA" must be 

 posted. The third is for explanation in which you should write a 

 complete history of the transaction at the time it takes place. This 

 should always be writen out fully so that if at any time later a 

 question arise as to the validity of an account, the details given 

 in this column will remove all doubt as to what it was. when it 

 took place, etc. The Dollars and Cents column at the extreme 

 right of each page are those in which you set down the amount of 

 the transaction. The correct ruling for a Farm Ledger is shown 

 below, which note: , /• 



J ICi. 



THIS THK CXPLANJITION COLUMM 



ooLiAna ctars 



Fox is now ready to make his first entry and the 



4« 



