HOIV TO KEEP FARM ACCOUNTS. 



All farm machinery bought must, of course, be charged to that 

 account. (See Plate 13. item cd.) Refer to 173. 



MAY 25. 

 He pays Eli Jones $40.00 for Stallion Services. 



64. This is charged to Expense for the same reason that item 

 ca was. For entry see item ce. I'late 13. Refer to 163. 



MAY 30. 



He balances his cash for May — $300.15 on hand. 



The difference between the sums total of the two sides 

 of the Cash Book is $300.15. That is what he has on hand so he 

 enters it in red ink (Plate 13, item cf) rules the closing lines and 

 enters the footings of the two sides in black iuk between them, 

 just as he did when closing the April cash. 



The posting done he must again take a Trial balance to see 

 whether or not his books are in balance. Thi.s he does and it fol- 

 lows: 



Dr. TRIAL BALANCE, MAY, 1901. Cr. 



65. Observe that the Trial Balance is simply the footings of 

 the various accounts in the Ledger except where there have been 

 entries on both the debit and credit sides on an account, and then, 

 the difference between the two sides only is entered in the Trial 

 IJalance. Refer to the Production account, Plate (58, Entries 

 have been made on both sides of this account and as the debit side 

 is the greater the difference $1,371.45 is what is entered on the 



debit side of the Trial Balance. 



60 



