SPECIAL ACCOUNTS AND ENTRIES 179 



If no insurance is carried the Fire Loss account is oper- 

 ated in the same way, except it is not credited with insur- 

 ance recovered. 



Death of Livestock. Livestock deaths covered by in- 

 surance are treated in a way exactly similar to fire losses, 

 discussed above. 



An entry may or may not be made for loss of livestock 

 at time of death when not insured. If it is not made at 

 that time, the loss is reflected in the proper livestock ac- 

 count at the time of recording the inventory at the close 

 of the year. 



The only difference between the two methods is that in 

 one case, the loss due to death will show in the account 

 as a separate item ; while in the other it will be merged 

 in with all other items of expense and income contributing 

 to the net loss or gain on that class of stock. 



The difference in results under these two methods is 

 brought out in Illustrations 31 and 32. Assume a swine 

 herd with an inventory value of $400 at the beginning of 

 the year, and $150 at the close. Consider that expenses 

 of maintenance, .charged to the account, amount to $100, 

 that sales amount to $140, and that the farm value of hogs 

 lost through cholera is $200. 



If no entry is made in the Swine account when the 

 hogs are taken by cholera, the Swine account and the Loss 

 and Gain account as far as affected by swine will appear 

 as in Illustration 31. 



If a credit entry is made in the Swine account at the 

 time the hogs are taken by cholera, Loss and Gain account 

 is debited. The two accounts would then appear as in 

 Illustration 32. 



Illustration 31 indicates a loss of $210 in swine. It does 

 not show what the result of the ordinary transactions was. 

 Illustration 32 shows a loss of $10 due to the ordinary 



