SPECIAL ACCOUNTS AND ENTRIES 197 



preted to mean that the respective branches of operation 

 have caused losses or gains represented by their increase or 

 decrease in value. For example, oats show a decrease of 

 $50 in Illustration 37. This means that Mr. Bartlett had 

 $50 worth less oats at the close of the year than at the 

 beginning. It is the difference in inventories on the two 

 dates. During the year he might have harvested 2000 

 bushels but sold most of them at a profit of $500, leaving 

 less on hand than at the beginning. 



A comparison of the Change of Wealth Statement with 

 the principles presented in pages 5 and 6 under the title 

 " Comparison of Statements" will tend to indicate the 

 similarity of principles involved. 



Profit as Farmer and as Individual. Since the books of 

 the farmer include household expenses and all personal 

 items of expense or income under the title "Household" 

 account, it is necessary to prepare a brief supplementary 

 statement in order to show the net results for the year 

 from the farm and also the net gain or loss as an individual. 

 Such a statement is called a Farm and Individual Income 

 Statement. 



Illustration 38 presents a statement of the type just men- 

 tioned. 



ILLUSTRATION 38 



FARM AND INDIVIDUAL INCOME STATEMENT 

 (HOUSEHOLD ACCOUNT SHOWING A Loss) YEAR ENDED FEB. 28, 1917 



C. E. Rightor 



Net Gain as an individual, as per Loss and Gain account $700 . 00 

 Add Household Expense, as per Loss and Gain account 800 . 00 



Net Gain as a farmer $1,500.00 



The figures used in deriving the $700 are the same ones 

 that are found in Mr. Rightor 's Loss and Gain account at 



