194 FARM ACCOUNTING 



ledger of A, only his share of the total value of the several 

 classes of property is used. 



Cash Rent. 1 There are few of the share rent accounting 

 difficulties that arise when a tenant pays rent wholly in 

 cash. Under the cash rent method of operation, the tenant 

 charges Rent account with the stipulated amount of rent 

 for the year. The corresponding credit is to cash or the 

 proprietor's personal account or Notes Payable account 

 depending on the method of payment, or whether pay- 

 ment is completed before the close of the year. 



Operation of More Than One Farm. The fanner who 

 owns and operates more than one farm should attempt to 

 keep a separate set of accounts and records for each farm. 

 He should make arrangements to have them kept on the 

 same basis as far as possible. This uniform basis permits 

 comparative statements to be made at the close of the year 

 presenting the relative operating results of each farm. 

 The details of operation can not be worked out without 

 first giving due consideration to the operating condi: 

 If horses and equipment are kept on one of the farms to 

 operate the others, and all are under one management, it 

 does not pay to consider the farms as separate operating- 

 units. They should be considered as one farm. When 

 the several farms are operated by different managers and 

 each farm is a complete operating unit in itself, each one 

 should have accounts of its own. 



The owner of such farms keeps a private ledger, and 

 cash journal or similar records, into which he carries the 

 net profit from each of the several farms after it has been 

 determined at the close of the fiscal year. 



Form of Increased or Decreased Wealth. In addition 

 to the Loss and Gain Statement and Statement of R 

 sources and Liabilities, there is a statement sometimes pre- 

 pared at the close of a fiscal year showing the form as- 



1 See also Rent Distribution, Chapter IX. 



