HOIV TO KEEP FARM ACCOUNTS. 



ing the Losses aud Gains were closed into the "Luss aud Gaiu'' 

 account, and the net gain of Fox credited to his account, his ac- 

 count was bahtuced and closed, and his Present Worth (Plate Gl) 

 of ?12.703.GO is wliat the business of the Clovermead Farmstead 

 is owing hhn at this time, therefore, it is a Liability of the busi- 

 ness, and by footing both the Resources and Liabilities we find 

 they equal each other. The bouks are in balance, and a glance 

 at this simple statement, or the statement taken from any Ledger, 

 at the end of the year, will show the tiwner of the business what 

 cash he has on hand and in bank, who is owing him, either by Bills 

 Receivable or open account, and the amount of grain, live-stock, 

 implemeuts. feed, or anything else he may have of value belong- 

 ing to him. It also shows him what he owes, aud to whom; aud 

 his actual and absolute net worth. Further, the Losses and Gains 

 taken from the "Loss and Gain" account (Plates 90 and 91) will 

 show him the total General Expense, the amount of cash paid out 

 for Feed, the percentage of depreciation, charged to l.,<jss and 

 Gaiu, on his I'arm Implements, what amount he paid for Labor, 

 how much his Interest amounted to, and the Taxes and Insurance 

 for the year. The above are entered under "Losses." because they 

 are non-productive accounts — nothing can be realized on them 

 in cash. But under "Gains" w(» have Production, $4,043.50; and 

 this amount represents everything having a cash value that left 

 the farm during the entire year — the total sales. Now, $4.043.o0 

 being the total proceeds of the sales, thai amount, less the sum 

 total of the "Losses," will be the net gain of the Proprietor — Fox. 

 The whole cost of conducting this farm for the year, including 

 general "Expense',' "Feed." "Labor," "Interest." "Taxe.s" and "In- 

 surance," aud the depreciation of "Implements," was >i;l,919.93. By 

 deducting this from the "Gains"' (total sales), we have ?2,123.57, 

 or, the net gaiu of Fox for the year. 



The annual statement, then, is the final summing up of the 

 year's business on I lie farmstead, aud is a most valuable guide to 

 every thinking farmer. 



225. And now. if we want to know what percentage of net 

 gain Fox made on his investment, add two ciphers to his net 

 gain, as shown by the "Loss aud Gain"' account, and divide it by 

 the net amount of his investment. Tiius: 21235700 — 1024<;3l 

 equals a percentage of 20.72. 



138 



