BOOKKEEPING BUSINESS TRANSACTIONS 5 



ILLUSTRATION 2 



STATEMENT OF RESOURCES AND LIABILITIES 

 FEBRUARY 29, 1916 MR. ARNOLD 



Resources Liabilities 



Cash $1,000 Mortgage payable.... $700 



Owing by Mr. Bell 500 Note payable 300 



Horses 1,600 Net Capital (or Mr. 



Cattle 1,100 Arnold's Capital) . . . 4,000 



Equipment 800 



$5,000 $5,000 



Comparison of Statements. The second of the three rea- 

 sons for wanting aggregate figures, as already enumerated 

 on page 3, can be briefly illustrated by assuming that a 

 Statement of Resources and Liabilities as compiled from 

 Mr. Arnold's records, appeared one year later, February 

 28, 1917, as in Illustration 3. 



ILLUSTRATION 3 



STATEMENT OF RESOURCES AND LIABILITIES PREPARED FROM 

 APPRAISAL, FEBRUARY. 28, 1917 MR. ARNOLD 



Resources Liabilities 



Cash $1,000 To outsiders (none) 



Owing by Mr. Bell 500 Arnold's capital a/c. . . $5,000 



Horses 1,600 



Cattle 1,100 



Equipment . 800 



$5,000 $5,000 



We see from a comparison of the net capital of Mr. 

 Arnold February 29, 1916, with his net capital February 



