HOW TO KEEP FARM ACCOUNTS. 



of the year, after tbe books are closed, except those showing a 

 Resource or a Liability. To make up the annual statement: 



(1) Under Resources enter the amount on hand as shown by 

 tiie Cash Book at the close of the last day of the year. When Fox 

 balanced his cash, March 31st (Plate 53). he had |42.59 on hand. 

 This is a Resource, and is the first item entered under that head in 

 the statement. 



(2) Taking the Ledger (Plate G2), we find "Clovermead" |12,- 

 900.00. This also is a Resource, because anything is a resource 

 of value belonging to us; and by value, we mean cash, or some- 

 thing we could realize the cash for if necessary. And Clovermead 

 Farm, as it is today, would fetch this amount; it's worth that 

 mucli, hence, a resource. 



(3) The next open account is Bills Payable. These are notes 

 we owe, and as everything left standing on the credit side of the 

 Ledger is either a Liability or a Gain, we must decide which of the 

 two it is. This is easy, for we know it isn't a gain, because we 

 owe it; therefore, it's a Liability, and so entered on the statement. 



(4) The next accouni; Production (Plate 68), is a Resource. 

 The inventory taken today (March 31st), at market price for the 

 Stock, Corn, Potatoes and Clover Hay Fox has on hand is $2,- 

 014.20. That is the cash value we could realize for it if sold. 



(5) Feed is next (Plate 72). This is also a Resource, for the 

 same reason that the items in the Production account are. Con- 

 sequently, we enter the amount we have on hand, |74.10. 



(6) Implements follow Feed, and are also a Resource. In- 

 ventory shows f732.40 as their value today, and they, too, are 

 entered. 



(7) On Plate 79 we find Wise has |106.40 due him. A Lia- 

 bility is something we owe. We owe Wise this balance of |106.40 

 for wages he left stand during the previous year, so that amount 

 goes under Liabilities. 



(8) The next account showing a Resource is the First Na- 

 tional Bank. All cash we have, whether on hand or in the bank, 

 is a resource, and the balance Fox has to his credit, fl,846.71, 

 should be so entered in this statement. 



(9) This takes all the open accounts in the Ledger except one 

 — the Proprietor's account — J. Fox. After all the accounts show- 



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