56 



The Farmer's Business Handbook 



the sum of all the entries on the credit side, and 

 this is continually so (if no error has been made) , 

 no matter how great the number of entries. This 

 enables one to prove the correctness of his work 

 at any time, and it will be spoken of later when 

 we come to the " Trial Balance." 



The last charges in all accounts having inven- 

 tories will be credits "by inventory," these being 

 the respective values of the teams, tools, etc., 

 having inventories at the end of the year. 



Note, also, that when the total value of all 

 assets is found at the end of the year the amount 

 of debts (bills payable) must be deducted, as at 

 the beginning of the year. It is evident that the 

 difference between the net assets at the beginning 

 and the end of the year will show the total profit 

 or loss. If the value of the net assets at the 

 close of the year be greater than at the begin- 

 ning, the difference will be profit; if less, there 

 will be a loss. Following is the final balance: 



Farmer (Net Assets) 



Value of property 

 over all debts 



[Balance from foot- 

 ings of previous 

 accounts.] 



$2,650 75 



These ledger accounts may be kept on one 

 page, ruled as the above accounts are, or on 

 two opposite pages as illustrated further on (page 

 60 and advance). 



