36 FARM ACCOUNTS. 



as the cow was classed under. If from the sale of poultry, 

 credit Poultry. There must be as many dollars and cents 

 credited as there are debited. But of course this credit need 

 not necessarily be placed under one account. It may be 

 distributed under different ones. Likewise the debit side 

 of a transaction may be distributed under several accounts, 

 but the sum of these debits must equal the sum of the 

 credits. 



In all the transactions of the memoranda which follow 

 there must be made debits and credits of equal amount. 



LEDGER TITLES.* 



The name of the enterprise, firm or individual with whom 

 a ledger account is kept should be written at the head of 

 the account. Names used in such a manner are called 

 ledger titles. 



In a complete set of double entry accounts for any busi- 

 ness, there are usually three kinds of ledger titles used. 

 First, Proprietary, under which is kept a record of the 

 transactions of the proprietor or proprietors as individ- 

 uals with the business. Second, Business, under which is 

 kept a record of transactions involving enterprises capable 

 of experiencing either a gain or a loss. Third, Financial, 

 under which is kept a record of transactions with cash, 

 and with persons and firms ^vhose dealings are on account. 

 The number of ledger titles used in any set of accounts 

 will depend first, on the number of proprietors of the busi- 

 ness; second, on the number of enterprises carried on and 

 the amount of detailed information desired concerning the 

 profitableness of the enterprises; third, on the number of 

 persons and firms with whom accounts are kept. 



The number of proprietary accounts is usually small, 

 more often one than more. The number of financial ac- 

 counts is determined by the conditions which influence 

 the manager of the business to extend or refuse credit to 

 those with whom he deals. The number of business ac- 



*See pag-e 27. 



Many a man's reputation would not know his character if they met. 



Hubbard. 



