76 FARM ACCOUNTS. 



and Inventory. It contains a list of the values of the ledger 

 accounts with their titles appearing in the Inventory to- 

 gether with the accounts and values appearing in the Trial 

 Balance whose difference shows something due us or that we 

 owe others. 



The difference between this list of resources and liabil- 

 ities is the net capital. Another way to determine our net 

 capital is to add our net gain, or subtract our net loss from 

 our net investment. It is thus apparent that in closing this 

 month the difference between our resources and liabilities 

 is equal to the sum of our net investment and net gain. See 

 card 35c. 



CLOSING THE LEDGER. 



This is a process undertaken at stated times for the pur- 

 pose of closing up or ruling up the several accounts in the 

 ledger. It is really an unnecessary process with the card 

 system unless we wish to discontinue business for as soon 

 as one card is full the account is transferred to another 

 one and the Business and Financial Statements give a 

 complete exposition of the results and standing of the 

 business. However, it is a nice process and serves to better 

 acquaint the student with the relationship existing be- 

 tween the accounts. The ledger should never be closed 

 until the Business and Financial Statements have been 

 made, as these give a thorough test of the condition of the 

 ledger for closing. This book gives the open ledger (its 

 condition after posting) and the closed ledger (its condition 

 after the processes of closing have been completed). In 

 closing a ledger take an Inventory and a Trial Balance 

 and make a Business and Financial Statement; open a 

 Loss and Gain account; into it transfer all losses and 

 gains shown in the Business Accounts. 



Open a balance Account ; into it transfer all resources and 

 liabilities shown in the Financial Accounts and the inven- 

 tories from the Business Accounts. 



Be always ashamed to catch thyself idle. Franklin. 



