SPECIAL ACCOUNTS AND ENTRIES 193 



ILLUSTRATION 36 



TENANT'S SWINE ACCOUNT UNDER SHARE RENT METHOD 

 Swine 



1916 



Mar. 1 Inventory $150 



1917 



1917 



Feb. 28 Sales per cash 



journal $500 



Feb. 28 Inventory 100 



Feb. 28 Net Gain, 



$600 



1917 



Mar. 1 Inventory $100 



shows a net gain of $450 to be transferred to the Loss and 

 Gain account. 



This gain is not the gain resulting from the raising of 

 swine on this particular farm. It is only A's share of 

 the gain. Likewise the net gain or loss shown by the Loss 

 and Gain account reflects only A's loss or gain and does 

 not show what result is obtained from the operation of 

 the farm as a whole. 



No Rent account is used under the principles described 

 above. The rent for a .given year is equal to the gross 

 income from the productive elements as shown by their 

 accounts. 



Inventory Record in Share Rental. Although "A's" 

 accounts are affected only by his share in the operations, 

 under share rental, the inventory record shows all the 

 property on the farm, just as it does under any other 

 conditions. This enables a better check to be maintained 

 on the various units of property, and affords a means of 

 determining the total value of the possessions of landlord 

 and tenant. When inventory values are recorded in the 



