HOIV TO KEEP FARM ACCOUNTS. 



to Lave as extra licl]) on llic fiinii involves too inueh detail, so FdX 

 fhan.iies "Labor" for the aiiioiiiit (if Ibis iransactiou, because he 

 wants fo know what he ]>a\s fm- liclp dui-ini; the year, and there- 

 fore, nnist open an ar<()Uiil Un- ••Liihor" in the Ledger to which 

 all money paid for lii'i]) shonld he charged. Kefer to Plate 9, 

 item cf. Kefer to 183. 



APRIL 30. 

 He balances liis cash account for April and finds $425.00 on hand. 



51. It is now the end of the month and he balances his cash. 

 Balancinji the cash is simply footing the two sides of the account 

 and the difference between them shonld be exactly what you have 

 on hand. The ditl'eience for A])ril, Fox finds is ^42.5.00. which is 

 the amount he has on hand. He now closes the account for April 

 by writing in red ink: — the date, the word Balance, and ihe 

 amount $425.00 on the credit side — see item eg. He then rules 

 the (dosing lines in red ink and writes between them in black ink 

 the totals |12,273.31. (See Plate 8 and 9, item df and ch.) 



52. WHEN CA8IT IS ON'EK OH SHOKT.— Every one makes 

 mistakes and should one occur, such as an error in making change 

 or in paying an account and omitting to charge it. and you cannot 

 find it after exhausting evei"y effort, the Cash Book can be made 

 to balance as follows: If your cash is over — having more than 

 you should as shown by the Cash Book, credit this diil'erence to 

 the Production account by writing on the debit side of the Cash 

 Book "Production — Cash Over" which makes it balance. If short 

 — if you have less casli tlian y()u should have according to the 

 Cash Book, charge it to yoursidf, writing on the cnnlit side of 

 the Cash Book, "J. Fox — Cash short" for the amount of difference. 

 In case you locate the error later, debit or credit the difference to 

 the proper account and debit or credit yourstMf or Production 

 as it may have been entered at the time you could not locate the 

 error. 



53. POSTING THE CASH BOOK.— Every entry appearing 

 in the Cash Book must be ])osted or transferred to some account 

 in the Ledger. The second c(dumn is used to enter the page of 



54 



