RECORDS AND ACCOUNTS 393 



INVENTORY OF REAL ESTATE AT THE END OF THE YEAR 



The difference in the value of a building or other improvement at the beginning and end of the 

 year should take into account any decrease in value due to the year's use, and any increase in value 

 due to repairing or renewals. For example, if we estimated that a barn, valued at $1,500 at the 

 beginning of the year, would usually last twenty-five years, the rate of depreciation would be 4 per 

 cent (or $60) for the year's use. The value at the end of the year would then be put down as $1,440. 

 If during the year more than the normal amount of repairs have been put on the barn, say $100 worth, 

 the value at the end of the year would be put at $1,540. If new buildings have been put up during 

 the year, the inventory would be increased by the value of such improvements. 



In the case of limestone applied, the cost of limestone should be charged off over four or five 

 years, that is, $100 worth of limestone should show a decrease in value of $20 to $25 a year in the 

 inventory. In the case of phosphates, the removal of twenty average crops of grain will remove only 

 about as much phosphorus from an acre as is contained in one-half ton of rock phosphate, so it may 

 be considered a permanent improvement for this purpose. 



The inventory value for the land itself should not be changed from year to year only in so far 

 as new permanent improvements have been added, such as ditching, tiling, fencing, etc. 



[This is followed by a separate inventory and cash account for 

 each of the classes of stock horses, cattle, hogs, sheep, and poultry. 

 These accounts are then summarized to show net increase or decrease 

 for each class and for all live stock. Then come inventories of 

 machinery and of feed, grain, and supplies, followed by a record of 

 crop sales and miscellaneous receipts. The expense accounts are 

 kept under several separate heads, as shown in the summary which 

 follows:] 



SUMMARY OF ALL EXPENSES 



Account 



Total Amounts 



[In contrast to the method of the United States Department of 

 Agriculture it is worth noticing that the account for permanent 



