50 FARM ACCOUNT IN(; 



Loss and Gain 



1917 



Feb. 28 From Rent .... $400 



This conforms to the principle that a debit and credit 

 of equal amounts should be made for every transaction. 

 It gives the results that were wanted, namely, the elimina- 

 tion of the $400 from the debit side of Rent account and its 

 transfer to the debit side of Loss and Gain account. It is 

 the principle that should always be followed in transfer- 

 ring an item or group of items from one account to an- 

 other. In Illustration 11, it is seen that there is an item 

 of $400 on the debit side of Rent account and one of $400 

 on the credit side. The account is therefore in balance. 

 The double lines ruled under the amount on each si< It- 

 indicate this fact, and also indicate that any items subse- 

 quently placed under Rent account are not to be mingled 

 in any way with any of the figures above the double lines. 



Similarly the transfer of the total milk income from the 

 Milk account of Illustration 10 to the Loss and Gain ac- 

 count is effected by making a debit entry in Milk account, 

 and a credit entry in Loss and Gain account for the amount 

 of the total income from milk for the period of time in 

 question, one year. In order to transfer an item or group 

 of items from the credit side of one account to the criit 

 side of another, debit the account from which the amount 

 is transferred and credit the account to which it is trans- 

 ferred. 



From a careful observation of the accounts of Illustra- 

 tion 10, it can be seen that the debits to Rent, Labor and 

 General Expense accounts are tabulated under appropriate 

 titles during the year; but at the close of the year they 

 are transferred each in total to the debit of Loss and Gain 

 account. Likewise, the totals of Milk, Corn, Oats and Mis- 



