54 



The Farmer's Business Handbook 



The natural order of all accounts which have 

 inventories will be indicated by the inventory. 

 The value of teams is found to be $628 at the 

 beginning of the year. An account is now opened 

 with Teams, the debits on the left-hand page and 

 the credits on the right-hand page. The first 

 entry is the debit charge against Teams, — of their 

 inventory value. In like manner a debit and 

 credit account is opened with Live Stock, Farm 

 Tools, Farm Products, Bills Receivable, Cash, and 

 with the Farmer to show his net assets. Farm 

 Household, it should be remembered, has been left 

 out in this case in order to prevent too great 

 complication. (See page 35.) At least once 

 each year all running accounts should be settled 

 and a due bill or note given for the balance. 



These entries from the inventory are called the 

 "opening entries." The farmer's ledger after 

 the opening entries are made appears as follows: 



Teams 



May 1 



Value as shown bj' 

 inventory \%28 00 



Live Stock 



May 1 



Value as shown by 

 inventory 



$492 00 



