FARM MANAGEMENT 303 



should be entered promptly so as to avoid oversight. The 

 best system of cash accounting is one in which two entries 

 are made of each cash transaction: one in the column for 

 totals; the other in a column provided for the enterprise 

 concerned. For example, if $50 is received for a load of 

 corn, the amount, $50, will be entered in the first or total 

 column, and also in the column devoted to corn. 



There are two kinds of cash records. They are arranged 

 in exactly the same way. One is devoted to entries of money 

 received and the other to money paid out. At regular inter- 

 vals, once a week or once a month, footings should be made 

 of totals and of each farm enterprise included in the cash 

 record. The sum of all the cash items entered in the various 

 columns devoted to farm enterprises should exactly corre- 

 spond to the sum of the total column. One serves as a check 

 on the other. If they do not correspond, some mistake or 

 oversight is indicated. The difference between the total 

 sum expended and the total sum received is the cash balance. 

 The difference between the two entries, amount received and 

 amount spent of a single enterprise, will indicate how the 

 enterprise is going, whether at a profit or a loss. 



But in order to determine more accurately the gain or 

 loss of a particular enterprise, other records are necessary. 

 These records show values other than cash received or paid 

 out. For example, corn as an enterprise, should be charged 

 with labor and credited with the feed furnished to the live 

 stock. When all values including cash are charged against, 

 or credited to, an enterprise, the difference between the two 

 totals will be the gain or loss of that enterprise. 



Records of this kind may be kept for the most important 

 enterprises. They will comprise two sets of entries, one for 

 receipts and the other for expenditures. The receipts or 



