HOIV TO KEEP FARM ACCOUNTS. 



AT THE END OF THE YEAR. 



135. To close this account: After having decided what 

 per cent, of depreciation you are going to charge annually for 

 "wear and tear" or having estimated their present value, write 

 on the credit side in red ink "By Inventory" and the amount. 



Now find the difference between the sides, and the amount 

 the debit exceeds the credit side will be a loss which enter on 

 tlie credit side in red ink "By Loss and Gain" and the amount 

 of difference which will make the account balance. 



Rule the closing lines and enter the totals between them in 

 black ink. 



Next, write on the debit side below the closing lines, in black 

 ink, "To Inventory" and bring down the amount credited when 

 the account was closed. 



Now, carry the amount lost over to the "Loss and Gain" ac- 

 count, writing on the debit side of that account in black ink 

 "To Building and Improvements" for the amount lost. 



101 



