FARM ACCOUNT I\(i 



I'sing the accounts in Illustration 12, the trial balance 

 after closing would appear as in Illustration 14. 



ILLUSTRATION 14 



TRIAL BALANCE AFTER CLOSING FEB. 28, 1917 

 Mr. Arnold's Ledger 



Mr. Arnold's capital. . 



Cash 



Mr. Bell 



Horses 



Cattle 



Equipment 



By comparing this trial balance with the one before 

 closing (Illustration 13) it is seen that in Illustration 14 

 tlic Capital account is greater and the nominal accounts 

 do not appear, while the accounts with the resources are 

 the same as in the trial balance before closing. In other 

 words, the trial balance after closing contains only the 

 items that appear in the Statement of Resources and Lia- 

 bilities. In fact, in simple cases, the trial balance after 

 closing can be used as a substitute for the Statement of 

 urces and Liabilities. The only difference between 

 them is in the form. This can be seen from a comparison 

 of the trial balance after closing Illustration 14 with the 

 Statement of Resources and Liabilities of Illustration 6. 

 Both are prepared direct from the same set of ledger 

 accounts. 



Preparation of Statements from Trial Balance. As pre- 



