74 FAEM ACCOUNTS. 



CLOTHING, FOOD AND FUEL, FAMILY EXPENSE, 

 HOUSEHOLD FURNISHINGS. 



These accounts should ordinarily be classed as Business 

 Accounts, but since they have nothing whatever to do with 

 the farm production, yet are a necessary part of man's liv- 

 ing, the net cost of each should be charged to the proprietor 

 (F. C. Hibbard) and the account credited with that amount. 



Before the net cost of each of these accounts can be ascer- 

 tained, a reference must be made to the inventory made at 

 this time card 34g. Clothing is estimated to be worth 

 $135, and Food and Fuel $82.40. In determining the net 

 cost of these accounts these inventories must be considered 

 as a credit. Thus, Clothing has a debit of $157.80 and con- 

 sidering the inventory $135 as a credit, the net cost is $22.80. 

 See duplicate card 14 showing Clothing credited $22.80, and 

 card *1 showing F. C. Hibbard debited $22.80. 



Food and Fuel has an inventory of $82.40. Considering 

 this as a credit the net cost is found to be $25.96. See dup- 

 licate card 15. Credit Food and Fuel and debit F. C. Hib- 

 bard $25.96. Family Expense has no inventory to consider 

 so it is credited with its total debit $23.35 and F. C. Hib- 

 bard debited a like amount. Since the inventory of House- 

 hold Furnishings is equal to its total cost, there is no trans- 

 fer entry to make. 



These four accounts are very important ones, since they 

 represent expenditures that are too often the source of 

 financial embarrassment and distress. Even if no attempt 

 is made to make a complete record of the business trans- 

 acted, these accounts should never be overlooked. 



SECOND TKIAL BALANCE. 



A second trial balance should now be taken to determine 

 the condition of the ledger since charging the proprietor 



*P. C. Hibbard Closed Ledger, page 83. 



"Easy money is hard to keep." 



