136 FARM ACCOUNTING 



inventory. An inventory is not the name of an account as 

 used in farm accounting. It affects a great many accounts, 

 however. Primarily an inventory is a list of coninnnliliix 

 in one's possession at a given time, together with the quan- 

 tities and value of each. As ordinarily used in conn* 

 with accounts, inventory refers only to the total value of 

 a given class of property. For instance, in the disci issinn 

 of Crop accounts, it was stated that "a Crop account is 

 oVbitrd with the inventory at the beginning of tlio period. " 

 This means, for example, that from the inventory s 

 containing an iteini/nl list of all j- m, tlic total 



value of corn on hand is n-nl as a basis for debiting Corn 

 account at the b'ri mring of tho period. 



Inventory Entries in Accounts. Tin method of usini: 

 the inventory in an account at the beginning and close of 

 a year is shown in Illustration 25 by its application in a 

 Swine account. 



ILLUSTRATION 25 



INVENTORY ENTRIES IN AN ACCOUNT SHOWING A GAIN 

 Swine 



1916 



Mar. 1 Inventory $400 



1917 



Feb. 28 To Loss & Gain 400 



1916 



Nov. 5Cash $200 



1917 



Jan. SOCash 300 



Feb. 28 Inventory. ... 300 



$8QQ 



$800 



1917 



Mar. 1 Inventory 300 



The entries in the Swine account of Illustration 25 are 

 made as a result of the following transactions or transfers 

 of value: 



