FARM ACCOUNTS. 75 



with the living expenses as above. It is apparent that these 

 transfers might have been made before taking the first trial 

 balance and thus obviated the necessity for a second one, 

 but it is safer for the beginner to check himself as often as 

 practicable. This Trial Balance is shown on card 35a. 

 This gives the true condition of the ledger at the close of 

 January. 



BUSINESS STATEMENT. 



A Business Statement is one made to show the * losses 

 or fgains of the business. It also shows the losses or gains 

 on each account separately. It naturally shows the cost 

 and receipts of each of the accounts representing the things 

 produced, bought, or sold for the purpose of gain. Such 

 accounts used in January are Keal Estate, Horses, Cattle, 

 Hogs, Poultry, Machinery and Implements, Oats, Corn, and 

 Farm Expense. 



This statement is made from the Trial Balance and In- 

 ventory in a manner hereafter explained. 



Take the statement card, and head it like card 35b. Re- 

 ferring to the second Trial Balance: Take the first Busi- 

 ness Account Real Estate and write the name on the 

 second line of the card and follow as illustrated with its 

 cost the debit in the Trial Balance. Write underneath 

 this the present value (Inventory). Subtracting the pres- 

 ent value from the cost a loss of $1.86 is shown. Take the 

 next Business Account Horses and to its receipts (credit 

 side on second Trial Balance) add its inventory and from 

 this total subtract its cost (debit side on second Trial Bal- 

 ance) and a loss of |26.43 is shown. Likewise handle the 

 remaining Business Accounts. 



FINANCIAL STATEMENT. 



A Financial Statement is one made to show our Jre- 

 sources and liabilities. It is made from the Trial Balance 



*A loss is a decrease of capital. 



tA gain is an increase of capital. 



JA resources is anything we have of value. 



A liability is anything we owe. 



Hear no ill of a friend, nor speak any of an enemy. Franklin. 



