FOREST STATICS BALANCE SHEET PROFITS 

 G. DISTRIBUTION OF SURPLUS 



Debit 



To dividends. 



Credit 

 Surplus, profit and loss account. 



H. CHANGES IN VALUE OF CAPITAL ASSETS 



Debit 



Appreciation or marking up of value of: 

 Stumpage. 

 Land. 



Credit 

 To appreciation of assets. 



Depreciation of assets. 



To losses of timber- by reason of fire, 

 etc., not insured. 



132. Forms of Economic Accounts in Forestry. During 

 the formative or constructive period of a forest investment, 

 previous to the receipt of the principal income, the economic 

 status of the entire investment may be shown by a cost account, 

 in which accrued interest is charged against all outstanding 

 capital investments. 



Debit 



Outlay for all sources. 

 Accrued interest on outlay. 



OUTLAY AND INCOME ACCOUNT 



Credit 



Income from all sources. 

 Accrued interest on income. 

 Balance, representing net investment 

 or cost. 



Since such an account is intended merely for the owners' in- 

 formation, the "interest" cost is a legitimate one. In the same 

 way the " economic" balance sheet ( 73) can be made up by 

 discounting the value of future income and entering the assets 

 on the basis of their capital or expectation value. 



"ECONOMIC" BALANCE SHEET 

 Debit 

 Expectation value of land and young 



Credit 

 Total net cost of land and timber from 



outlay and income account. 

 Net cost of improvements (original 

 cost, less sums returned for de- 

 preciation). 

 Potential surplus. 



It is this balance which is the object of nearly all the calcu- 

 lations discussed under forest finance. 



timber. 



Value of improvements. 

 Potential deficit. 



