CHAPTER VI 

 SPECIAL ACCOUNTS AND ENTRIES 



In illustrating the principles of the financial state- 

 ments, the ledger and books of original entry, only a lim- 

 ited variety of farm transactions have been u> <!. Having 

 a working knowledge of a few principles of debits and 

 credits as already presented, one could make entries for 

 almost any transaction that might arise. The principal 

 difficulty in doing this would lie in understanding the 

 exact nature of the transactions, and in knowing what 

 the customary titles of some of the special accounts are. 



Without entering the field of farm cost accounting as 

 yet, there is quite an important group of transactions that 

 require special consideration. Also, some of the accounts 

 already discussed n. rd further elaboration. 



Hired Man. When a hired man is employed regularly 

 for a year or the greater part thereof, at a certain wage 

 per month or wrrk. h. is quite often paid small amounts 

 from time to time, without drawing his full amount at 

 the close of each working- period. In such cases, a per- 

 sonal account is opened with the hired man, bearing his 

 name. At the elose of each month or week his account is 

 credited with the agreed wage, and labor account is deb- 

 ited. When any payment is made to him, his personal 

 account is debited and Cash is credited. The balance of 

 his account will then show at any time just how much 

 is owing to him, provided all postings have been made. 

 These entries are in accordance with a rule for debiting 

 and crediting accounts of individuals, firms or corpora- 

 tions. The hired man gives his services, which are val- 



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