Kinds of Accounts 



23 



definitions and principles which apply to any kind 

 of accounts, whether farmers' or merchants'. 



Accounts are condensed records of business 

 transactions. 



Bookkeeping is the art or practice of writing 

 accounts methodically in books. 



Kinds of accounts. — There are three kinds of 

 accounts : 



PROPERTY ACCOUNTS. 

 PERSONAL ACCOUNTS. 

 INCmENTAL ACCOUNTS. 



These three kinds are the only ones needed for 

 any business, no matter how large or how com- 

 plicated its transactions. All three are needed in 

 keeping a complete record of farm operations. 



Property accounts. — Usually a farmer will keep 

 an account with each kind of property. The sim- 

 plest form of a property account is an account with 

 property in money, or a Cash Account. The fol- 

 lowing is an illustration of a farmer's cash account, 

 starting from the inventory given on page 9 : 



SiJ'PLK Cash Account 



Apr. 1 

 " 14 



.4 14 



Cash on hand and in 

 bank 



Received from Rice's 

 note and interest. . 



Received from apples 

 sold 



$375 00 



378 40 



5 40 



Apr. 3 



' 7 

 ' 14 



' 16 

 ' 16 



' 16 



Paid for expense at 



Rochester 



Paid for shoeing 



Paid for 15 bus. seed 



wheat 



Paid Peter Brown... 

 Paid for repairing 



reaper 



Paid for repairing 



harness 



75 



15 00 



10 00 



4 29 

 3 68 



