182 FARM ACCOUNTING 



Since the labor for cultivation and harvesting is not 

 employed by the farmer he does not have any entries to 

 make concerning them. I'nder the cost method, however, 

 the fanner would debit the beet field account with the 

 labor and expenses connected with the preparation of the 

 soil and the planting. 



If the contract calls for cash on delivery of the beets, 

 the simple entry for a cash sale is made, crediting Beets 

 and debiting Cash. If, however, the payment is deferred 

 until sometime later, the party buying the beets should be 

 debited at the close of each day witli the contract price 

 of the beets delivered during the day. When he settles, 

 he is credited and Cash debited. 



Orchards. For accounting purposes the orchard is con- 

 sidered in practically the same light as the annual crops. 

 It has some peculiarities that must be reflected in the ac- 

 counts in order to show proper results, but brings up few 

 new problems. 



The orchard is charged with all eosts of clearing and pre- 

 paring the soil, staking, purchase of nursery stock, plant- 

 ing, and all maintenance charges for the first four to seven 

 V when it brains to yield. All expenses thus charged 

 up to and including the first year of its yield are consid- 

 ered as adding to the value of the orchard. To these ex- 

 penses are added interest ' on the investment for the period 

 mentioned. The resulting debit balance is the figure which 

 is to be considered as the investment in the orchard during 

 subsequent years. Any expenses after that time are to be 

 considered as operating expenses to be offset against the 

 income from the orchard for the year to find the yearly 

 loss or gain. 



In finding the loss or gain, an account called Orchard 

 Expense and Income account is kept. To this is debited 

 all expenses, after the first bearing year, such as cultiva- 



1 See Appendix for the rate of interest. 



