FARM ACCOUNTS. 37 



counts is determined arbitrarily by the manager for the 

 purpose of securing those details of information as to 

 cost of production and relative profit which will help him 

 to plan and execute his business intelligently, and thus 

 realize the most substantial profit. 



DEBIT WHAT COMES IN. CREDIT WHAT GOES OUT. 



After having determined upon the titles* for the ledger 

 cards (names of accounts to be used) the inventory should 

 be recorded under the ones to which it belongs. It thus 

 comes in to these accounts and is debited (cards 2, 3, 4, 5, 

 6, 7, 8, 9, 10, 11, 12, 13, 14, and 15). The total of these 

 debits is $13,472.18 as exhibited on card 34c. The pro- 

 prietor or owner, F. C. Hibbard, gives out or distributes 

 these values to the several accounts and he should be 

 credited with the sum of them (card 1). 



It will be noted from an examination of the entries of 

 inventories, made on the cards, that the date, year, month, 

 and day of month are always given, the year being placed 

 first at the head of the column. The name under "Opposite 

 Title" is that of the account receiving the opposing entry 

 debit or credit as the case may be. Under "Explan- 

 ation" the details are given, or a reference telling where the 

 details may be found. The "Posted to No." column contains 

 the card number of the account mentioned in the "Opposite 

 Title" column, and by this means the opposite account 

 may be readily found. 



After faithfully posting (carrying the records to the 

 ledger cards) the inventory, the transaction beginning with 

 Jan. 1st should be posted to card 15, Food and Fuel debited 

 and Cash credited card 3. Hours of labor should be 

 recorded on card 31. The titles at the left are those re- 

 ceiving the benefit of the labor. Team time, card 31a; 

 milk, butter and cream used and sold, card 32; eggs 

 laid, used and sold, card 32a; Jan. 5th, feed fed, card 33 

 "Feeding Statement Card"; milk produced, card 36, 36a 

 and 36b should all be recorded. 



*See page 27. 



Talk less and listen more. Hubbard. 



