156 



FARM ACCOUNTING 



Closing Journal Entry. This does not bring up a new 

 subject but merely presents an old principle in a new way. 

 It deals with the process known as closing the ledger. This 

 subject has been presented under the title, " Transfer or 

 Closing Entries" in Chapter III. That discussion consid- 

 ered the closing without the process of posting, the ledger 

 being the only book used. 



When books of original entry are used they must be 

 used for all entries except those involving only one ac- 

 count, as in bringing down balances or inventories. Clos- 



ILLUSTRATION 30 



CLOSING JOURNAL ENTRIES 

 GIVEN ACCOUNTS AS FOLLOWS, TO PREPARE CLOSING JOURNAL ENTRIES 



Labor 



Jan. 31 $30.00 



Feb. 28.. 30.00 



1916 

 Mar 1 



$500.00 



1917 



Jan. 20 Cash $250.00 



Feb. 28 Inventory... 400.00 



Cam 



1917 



Jan. 31 Cash 



$100.00 



General Expense 



1917 

 Jan. 31 

 Feb. 28 



$100.00 

 80.00 



