HO IV TO KEEP FARM ACCOUNTS. 



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AT THE END OF THE YEAR. 



190. To close this account we find the difference between 

 the two sides. If the credit side is larger, we write in red ink 

 on the debit side "To Loss and Gain" which is gain on interest. 

 If the debit side side be the larger, we write, in red ink on the 

 credit side "By Loss and Gain" which is loss on interest. This 

 makes the account balance. Now, rule the closing lines and 

 enter, if there be a loss, on the debit side of the Loss and Gain 

 acocunt the amount lost, or if there be a gain, on the credit side 

 of the Loss and Gain account the amount gained. (See Plates 

 82, 83 and 90.) 



191. DISCOUNT. — As discount is simply anotlier name for 

 interest it is useless to open a separate account for it, but call 

 interest and discount the same and debit or credit both to the 

 Interest account. 



192. ENTRY TO MAKE OF NOTES YOU HAVE DIS- 

 COUNTED. — Sometimes when in need of money we have a note 

 discounted at the bank. If you do tliis. don't forget to credit 

 "Bills Receivable" for the full face of the note and debit Interest 

 for the discount deducted by the bank. Then, if this amount has 

 been placed to your credit in the bank, debit the bank for the 

 amount you receive or the proceeds of the note. 



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