18 DETERMINATION OF METHOD 



down to nothing. A ' limit of depreciation ' is fixed, 

 and when that figure has been reached no further deduction 

 is made, but the article is carried forward year by year 

 at the same price. To take an example, a set of harrows 

 may be worth 50s., and if kept in repair it will be safe to 

 give them a life of twenty yearg. This means that 2s. 6d. 

 per annum must be deducted for depreciation, but if the 

 harrows are kept in repair they will always have a certain 

 value, say 105., so that after sixteen years, when they will 

 stand in the inventory at 10<s., no further depreciation need 

 be allowed. 



This may appear for the moment a somewhat complicated 

 and troublesome method of valuation, but by ruling the 

 Implement Stock Book in the manner shown, the operation 

 becomes a very clear and simple one, whilst it has the great 

 advantage of reasonable accuracy. The value of each group 

 of implements and the depreciation on them in any year 

 becomes, first, a sum in subtraction and then a sum in 

 addition. Several years can be provided for, but to avoid 

 confusion in the future it must be remembered to leave 

 a considerable space at the end of each group when writing 

 out the Inventory for the first time, to allow for purchases 

 in the coming years. In Table III is given an example of the 

 Implements and Machinery Book. 1 



All the Miscellaneous Tools and Consumable Stores, such 

 as hay -forks, hurdles, binder twine, spare parts, &c., should 

 be inventoried and priced in a stock-book of their own, 

 adding fresh purchases and detailing everything given out 

 for use or consumption, so that a record is provided of the 

 use of tools and materials and of the quantities in stock. 

 The rulings for such a book will be readily devised to 

 meet individual requirements. Table IV may serve as 

 a guide. 



The next essential is a record of the application of Labour, 

 both manual and horse. Time-sheets are used to facilitate 

 its preparation, and these can be handed out to the men 

 on pay-day, to be filled up by them and brought back at 



1 From Orwin, Farm Accounts, p. 16 (Cambridge University Press). 



