SPECIAL ACCOUNTS AND ENTRIES 195 



sumed by the increased or decreased wealth. It shows 

 what has become of the profits or what resources and lia- 

 bilities the losses affected. This statement, which contains 

 four money columns, is called the Change of Wealth State- 

 ment. It indicates in the first two columns the resources 

 and liabilities at the beginning of the year and at the 

 close. These amounts are used as a basis for calculating 

 the amounts in the third and fourth columns showing the 

 increase or decrease in each kind of resource and liability. 



An example showing the form and characteristics of 

 this statement is presented in Illustration 37. 



From a perusal of the statement one finds that Mr. Bart- 

 lett's gain for the year ended Feb. 28, 1917, was $1123.40. 

 As previously learned, this means that the resources have 

 increased or the liabilities decreased that much during the 

 year; or some equivalent combination of increases and de- 

 creases of resources or liabilities has taken place. It is 

 usually the latter, but one cannot tell which it is from 

 the loss and gain balance as found in the Loss and Gain 

 Statement. The Change of Wealth Statement analyzes 

 the changes. 



The Summary and Proof show that some resources have 

 been increased by $420, others decreased by $296.60, leav- 

 ing a net increase in resources of $123.40. If a man's net 

 earnings are $1123.40 during a year, while he has only 

 $123.40 more in property at the close of the year, it fol- 

 lows that the remaining amount must have gone to reduce 

 his liabilities to outsiders. This is exactly the result in- 

 dicated by the Summary and Proof in Illustration 37. 



If it is desired to look further, to find out just what re- 

 sources decreased or increased during the year or what 

 liabilities decreased, the information can be found in the 

 ''increase" and "decrease" columns of the Change of 

 Wealth Statement. 



These increases and decreases should not be misinter- 



