S2G ON KEEPING FARM ACCOUNTS. 



is properly landlords' work ; and for them, in tlie first and 

 second years of tlieir occujiation, to charge against the 

 returns of those years the whole cost which has been then 

 incurred would be obviously wrong. Wherever the same 

 capital is invested, and the same skill and judgment exer- 

 cised, the accounts should certainly show a similar annual 

 income ; and so, no doubt, if properly kept, they will, plus 

 or miuKS, the cxtra-ovddwM'j elfect of weather and prices. 

 But to do as is often done — to charge upon each year all 

 that during it has been invested in the permanent improve- 

 ment of the land, would have the contrary efiect of exhibit- 

 ing a loss upon every fresh investment of capital, and con- 

 sequent additional exercise of skill. All such expenses 

 should be placed in a " dormant capital" account, and on 

 the whole sum which appears there at the end of each 

 year (along with all the rest of the farm capital) the usual 

 per-centage should be charged in the annual balance-sheet ; 

 such a portion only of the jji-hicipal should also annually be 

 charged before the ''balance" is struck, as shall exhaust the 

 '' account" by the end of the lease. If 100/. be spent in 

 draining during the 10th year before this period, then year 

 after year, on the debtor side of the dormant capital account, 

 the sum standing v/ill be 90/., 80/., 70/., &c. ; 10/. per annum 

 being annually abstracted and charged on the gross produce 

 of the farm before the clear profit of the year can be ascer- 

 tained, and, in addition to this, 5 per cent, has also every 

 year to be charged on the 90/., 80/., 70/., respectively, 

 which at those periods represent the amount of the farmer's 

 capital still remaining invested in that particular form. 



Now, as regards the yearly inquiry into the profit or loss 

 attendant upon the twelvemonth's proceedings, it is really 

 a very simple affair. Suppose a farmer to have commenced 

 his year's accounts aright, he then entered (whether actually 

 or not), by jwrchasc, into his position; and the several 

 portions into which his capital at that time invested might 

 then have been divided were placed on the debtor side of the 

 several accounts which concerned them. The sheep account 

 received its record of the value of sheep on hand, and of that 

 portion of food to be consumed by them then remaining ; 

 the wheat account received its record of grain in rick and 

 barn, of seed sown, of ploughings, harrowings, &c., by which 

 the crop had till then been benefited ; and so on. Since 

 then, payments on account, whether for labour, or stock, or 

 food ; and receipts on account for produce of all kinds have 



