14 FARM ACCOUNTING 



tabulations and statements are prepared primarily from 

 the ledger. 



Books could be kept, transactions recorded, financial 

 statements prepared, constructive criticisms made concern- 

 ing a business, and in fact all essential bookkeeping pur- 

 poses served from the proprietor's viewpoint without the 

 use of any other book than a ledger. 



Accordingly the ledger is used at this time because of 

 the opportunity it affords for presenting the essential prin- 

 ciples and scope of bookkeeping without the use of un- 

 necessary details. 



The first method of recording business events, which 

 would show the transactions in narrative form as they 

 took place from time to time, might present the informa- 

 tion in some such unscientific way as this, using Mr. Ar- 

 nold 's transactions as summarized on pages 4 and 5. 



March 1, 1916, I (Mr. Arnold) have $1000 in the bank; 

 Mr. Bell owes me $500; my 12 head of horses are worth $1600; 

 my 20 head of cattle are worth $1100; the equipment is worth 

 $800; I owe $700 on a mortgage held by Wade & Co., on my 

 equipment; I also owe $300 to the bank on my 90 day note. 



March 30, paid $300 to bank to redeem note and paid $6 

 interest. 



March 31, paid $30 to hired man; and paid $20 for general 

 expenses. 



April 16, paid $60 for insurance and taxes; and received $40 

 check for milk sold to creamery. 



April 30, paid $30 to hired man for April. 



May 16, received a $60 check for milk sold. 



May 20, paid $10 for sundry items in town. 



May 31, paid $30 to the hired man for May. 



June 16, received a $65 milk check. 



June 28, sold some fruit and garden truck for $20. 



June 30, paid hired man $30. 



July 16, received milk check for $50. 



July 31, paid for labor, two men, $60. 



