CHAPTER VI 



ACCOUNTS WITH PAKTICULAB FIELDS 

 AND CROPS 



Two methods of determining gain or loss have 

 ah-eady been set forth. The one simply attempts 

 to note values of property possessed at the be- 

 ginning and end of the year. The difference in 

 these inventories shows the gross gain or loss, but 

 from them it cannot be determined in what parti- 

 cular undertaking the gain or the loss occurred. 

 The second method, which is more elaborate, 

 sets forth as nearly as farm conditions will per- 

 mit, the gain or loss in each subdivision. A 

 banker may, and not infrequently does, estimate 

 his securities at more than they are worth. That 

 is, he inventories them at face value when they 

 are really at a discount, or entirely valueless. In 

 a similar way, a farmer may inventory a horse at 

 $500 when it really is worth only $150, and will 

 not sell for more than that. It will be seen that 

 in order to determine gain or loss with any degree 

 of accuracy not only must the accounts be kept 

 correctly, but the best of judgment must be exer- 

 cised in valuing the assets at the beginning and 



(82) 



