HOW TO KEEP FARM ACCOUNTS. 



counts is worth anythinfi to anj- business unless there is some 

 cheek on them that will prove their correctness. That is why a 

 trial balance is necessary, and as accuracy is the first essential 

 in accounts. Fox takes a trial balance, and this is what he finds. 

 Dr. TRIAL BALANCE, APRIL, 1901. Cr. 



His Ledfi;er is in balance. That is the footings of the debit 

 and credit sides equal cacli other. You will note he first enters 

 on the debit side of the trial balance the anioniit of Casli on hand 

 at the close of the last day of the month. Then taking the Ledger 

 he goes through it, entering on the debit side of the trial balance 

 all amounts found on the debit side of the Ledger, and on the 

 credit side of the trial balance all amounts found on the credit 

 side of the Ledger. This is always the case unless an account has 

 entries on both the debit and credit side, and then, you find the 

 difference between the two sides. For instance, this month the 

 debit side of the Production account (Plate 68) is fl,398.45 and the 

 total of the credit side at this time is *27.00 (Plate i>9). The dif- 

 ference the two sides is .$1,371.45 which he sets down in the ex- 

 ])lanation colunni on the debit side of tlie Ledger in pencil. This, 

 I lien, is the amount taken in the trial iialance. Remember, when 

 an account has entries on both the debit and credit sides, to take 

 the difference between the sums total, and the amount the greater 

 exceeds the smaller is the amount carried to the trial balance. 



57. TO LOCATE EKUOKS IN A TRIAL BALANCE.— If 

 the debit and cretlit sides of a trial balance do not exactly agree 

 the books are not in balance and the difference, no matter how 



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