FARM ACCOUNTING 



Corn 



1916 



Dec. 6 Cash.. . $1200 



Oats 



1916 



Aug. 18 Cash $400 



Miscellaneous Income 



1916 



June 28 Cash (Fruit & 



Garden truck) 20 

 Oct. 7 Cash (Fruit <fc 



Garden truck) 60 

 Nov. 18 Cash (Fruit & 



Garden truck) 20 



The expense and income accounts of Illustration 9, such 

 as Rent, Labor, General Expense, and others are intended 

 to record transactions showing decreases and increases of 

 capital. Those items showing increases are placed on the 

 credit side and those showing decreases of capital are placed 

 on the debit side of the ledger, but are placed under some 

 other heading than Capital account. For example, the 

 $400 on the debit side of Rent account in Illustration 9 

 is the same item that appears in Illustration 8 on the debit 

 side of Mr. Arnold's Capital account, dated Feb. 21. 



Both items were created as a result of the same transac- 

 tion but under different methods of accounting. The 

 debit to the Capital account was made under the method 

 that shows all increases and decreases in the capital of the 

 business direct in the Capital Account. The debit to Rent 

 account was made under the method that shows increases 



