26 



The Farmer's Business Handbook 



Suppose the farmer is growing wheat and wants 

 to know whether he is making or losing. His 

 account with property in the form of wheat is as 

 follows : 



Wheat Account (1900 Crop) 



Aug. 

 Oct. 

 Apr. 



Pitting land 



Seeds 



Threshing and hands 

 Hauling to marlset . . 

 Rent of land, at $2.50 



per acre 



Use of tools 



Profit (to balance ac 



count) 



Apr. 1 



On hand, new inven- 

 tory 



Sold 200 bushels at 

 80 cents 



On hand, 100 bushels 

 at 80 cents 



(This last entry may 

 be transferred to 

 " Farm Products " if 

 desired, in opening 

 a new account. See 

 p. 28.) 



$160 00 

 80 00 



$240 00 



Personal accounts are kept with the men or 

 firms (that is, with persons) with whom the farmer 

 deals. When accm^ately kept, they show exactly 

 what he owes and what is due him from others. 

 A personal account appears as follows: 



John Smith 



Apr. 4 

 " 25 



10 bus. wheat (a) 60 c. 

 To cash 



$ 6 Oo!Apr.l2 

 20 00 " 30 



1 yearling calf 



254 hours, at 123^ c. 



$20 00 



31 75 



In other words. 



When the farmer sold John 

 Smith goods or paid him cash, 

 the farmer wrote the amount 

 on the left or debit side of 

 the account. 



When John Smith worked 

 for the farmer or when the 

 farmer bought goods from 

 him, the farmer wrote the 

 amount on the credit side. 



