72 The Farmer's Business handbook 



At the end of the year a new inventory is 

 made. The live stock, teams and farm tools are 

 valued as at first. The cash on hand is also set 

 down. In this case it is taken from the books. 

 Not knowing whether there eventually will be gain 

 or loss in 1901 wheat field, the wheat is valued at 

 cost, or what has been expended upon it, $52.50. 

 Mr. Bryant owes $87.80, and there is $25.75 due 

 Mr. Smith. The former, for the present pur- 

 pose, may be set down under the head of accounts 

 due and the latter under accounts owing, although 

 they are, strictly speaking, accounts with persons. 



Summary of Inventory taken May 1, 1901 



Teams $810 00 



Live Stock 570 00 



Farm Tools 396 00 



Cash 1,389 69 



Value of wheat in ground 52 50 



Accounts Due (Bryant) 87 80 



$3,305 99 



Accounts Owing (Smith) 25 75 



Net assets $3,280 24 



The above summary sets forth in brief the 

 assets and liabilities, and the net assets at the end 

 of the year, which last can be quickly compared 

 with the net assets at the beginning of the fiscal 

 year. In this case, the assets are less at the 

 beginning of the year than at its close ; there- 

 fore the difference is gain: 



