HOIV TO KEEP FARM ACCOUNTS. 



DECEMBER 20. 

 He begins to think he ought to have a bank account. Doesn't like the idea 

 of having so much money in the house, therefore, he opens an account with 

 the First National of his County Seat by depositing $2750.00. 



95. Fox cliarges or debits the bank for the money he deposits 

 today (Plate 41, item eg) and will open an account with (he Bank 

 in the Ledger. It is true that many take exception to keeping the 

 bank account in the Ledger, and some accountants characterize 

 it as "old fogyism" but the conditions which govern farm account- 

 ing are different than those of commerce. The farmer will find 

 it a great source of satisfaction to have it there — ready to refer 

 to at any time. Further, when the bank returns him his cancelled 

 checks, he can compare those cancelled with those given out and 

 tell at a glance if any have not been presented for payment. But 

 more than all, a farm IxMlger should show for various reasons, 

 every business transaction of the farmstead for the year. Ifs 

 more than likely tlie owner himself will keep the books — or rather 

 book, and if death should suddenly ensue, the Ledger ought to be 

 kei)t so as to furnish a guide to those of his family who take-up 

 the management of the farmstead and continue it along prosperous 

 lines. Refer to 212. 



DECEMBER 23. 

 He gives Ed. Wise check for $50.00. and also writes another for $10.00 for 

 personal use. 



96. He debits ^^■is(■ for check (Plate 41, item ch) and as this 

 is llie first chet'k he has given out. he numbers it No. 1. He has 

 now debited Wise, but as he is going to open an account with the 

 Bank in his Ledger he must also credit the Bank for this check 

 No. 1 whi(di he does in Knlry (hi. Plate 40. In posting this entry 

 (Id t(i the Bank account (Kefer to Plate 89, item dd) he writes 

 in the explanation column Ck. No. 1. so that when comparing tht 

 cancelled checks returned by the Bank about the tirst of the month 

 he can check over the account and see just what checks iuive 

 been presented for payment. On the stub of his check book he 

 also writes the number so that he can number each clieck as he 

 makes it without having to refer to the Ledger account to tind 

 the number of the last check. 



He also charges himself for Check No. 2 which he makes for 



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