134 FARM ACCOUNTING 



year, crediting Household. If some of the boys of the 

 family work for a stipulated amount which is considerably 

 less than current prices for similar help, debit Labor and 

 credit Cash or the Son's account as in case of a regular 

 hired man, and then, at the close of the year, debit Labor 

 and credit Household with enough to make his total labor 

 charge equal to that of a hired man of equal ability. For 

 example, if a 20-year-old son, Tom, works for his father 

 for $10 a month and board and lodging, the entry at the 

 close of each month would bo : 



Labor $25.00 



Tom $10.00 



Household 15.00 



Then at the close of the year, when it is found that the 

 average wage of liin-.l mm is $80 a month with board and 

 lodging, make this additional entry: 



Labor $240.00 



Household . ... $240.00 



This entry is the result of the following calculations: 



Per Mo. PerYr. 



Average expense for hired labor, cash $30 -S >'() 



tge expense for hired labor, board and lodg. $15 45 180 $540 



Average expense of Tom's labor, cash 10 120 



Average expense of Tom's labor, board and lodg. 15 25 180 300 



Value of Tom's labor not previously charged to 



Labor, to be entered at the close of the year . . SJ 1 ( ) 



With this $240 posted to the debit of Labor account, the 

 latter will show the value of services put into the farm 

 enterprises. That is what the Labor account should show, 

 in order to arrive at costs that have a meaning. 



