SPECIAL ACCOUNTS AND ENTRIES 135 



Feed. When feed of any kind is purchased for a spe- 

 cific class of livestock, the livestock account for which 

 it is to be used is debited. If it is a feed that is used by 

 several classes of livestock a "feed" account is debited, 

 the balance of which is transferred to Loss and Gain ac- 

 count as a separate item. 



In operating a cost system the Feed account is closed 

 into the several livestock accounts at the close of the year, 

 based on the relative amounts consumed as shown by the 

 feed records. 



For example, in the cost system, if the balance of Feed 

 account at the close of the year, after crediting it with 

 the inventory, but before closing, is $160, of which $80 

 worth was consumed by swine, $20 by poultry, $30 by cattle 

 and $30 by horses, the following entry would be made: 



Swine $80.00 



Poultry 20.00 



Cattle 30.00 



Horses : 30.00 



Feed.. $160.00 



The inventory is brought down on the debit side below 

 the double lines, as in any other account. 



Fertilizer. Commercial fertilizer purchased is charged 

 to Fertilizer account, the balance of which is closed into 

 Loss and Gain, after considering inventory, when detailed 

 costs are not kept. 



Under the cost accounting method, the several fields are 

 charged with the respective amounts of fertilizer applied. 

 In such a case, if all fertilizer is used before the close of 

 the year, the account should be in balance. If it is not 

 all used, the balance should agree with the value of the 

 fertilizer on hand. 



Inventories. One of the most important elements in de- 

 termining the resources or the loss or gain of a farm is the 



