FARM ACCOUNTS. 73 



In preparing for a trial balance take a finely sharpened 

 lead pencil and add the sides of each account placing the 

 footings directly under the line following the last entry on 

 each side of the account. Take a Statement card and write 

 the name of each account with its debit and credit amounts 

 in the columns provided. Then add these two columns for 

 comparison. 



Since in posting to the cards every transaction must have 

 an equal amount of debits and credits, the total sum of 

 these debits and these credits should equal each other. 

 If they do not, the ledger is out of balance because an error 

 has been made \1) in posting, or (2) in adding the sides of the 

 account, or (3) in transferring the accounts to the trial 

 balance or (4) in adding the trial balance. 



As you do not know just where the error is it will be 

 necessary to sj'stematically test each of the four conditions 

 above noted. Commence with the first posting and see 

 that the debits and credits are equal and take up severally 

 the following transactions in like manner, placing a dot or 

 a check mark after each amount on the cards. Look through 

 the cards carefully to see if there are any amounts not hav- 

 ing dots or check marks beside them. If there are, there 

 is something wrong. (2) Add again the sides of each ac- 

 count and (3) see that the sums are properly carried to the 

 Trial Balance. Now (4) add the Trial Balance carefully. 



Working through this routine should bring the desired 

 results. If the error is not found, go over the routine 

 again and again until the work is correct. 



INVENTORY ON JANUARY 31st. 



The inventory as of the last day of the month should now 

 be taken so that the accounts which are not a part of the 

 farm business may be charged against the proprietor. See 

 chapter III and proceed as instructed on page 30. 



'The only real enemy one has is himself." 



