204 FARM ACCOUNTING 



(c) Before distributing the gain or loss for the year, an entry 

 is to be made debiting LOM ;m<l (lain and cn-iliimir the Part- 

 ners' Drawing accounts with 5% interest on tin- re>pe.-tive in- 

 vestments of the two partners. 



(d) Labor account is to be debited and each partner credited 

 in his drawing account at the close of the year with $600 for 

 labor during the year. 



(e) Each partner may draw from the business for private 

 use, cash or produce to the value of $1100 during the year. 



(f) Either partner drawing more than $(500 in cash and pro- 

 duce the year shall be charged with 5% interest for the elapsed 

 time on the excess withdrawals, Loss and Gain beini: credited. 



(g) Depreciation at 5% per annum shall be charged to Loss 

 and Gain account on all buildings and 10% on all equipment 

 before distribution of profit-. 



Note. The terms of the copartner-hip ajn.-ment as given 

 above do not require an entry until transactions are stated. 



Jan. 1. Fred Anderson invests $1000 cash in the business ac- 

 cording to the terms of the partner-hip contract. 



Jan. 3. There was sold to the Jones Elevator Co. on account, 

 75 bu. wheat at $1.70. 



Jan. 10. Sold for < a>h r> T. oats straw at 



Jan. 20. Frank Anderson withdrew cash for life insurance, 

 $34.82. 



Jan. 25. Received a check from the Jones Elevator Co. for 

 wheat sold them on the 3rd. 



Feb. 3. Sold to Sam'l McNulty on account 15 hogs for $300. 



Feb. 6. Each of the partners withdrew $30 for personal use. 



Feb. 24. Sold to Andrews & Johnson on account oats >1 "><>. 



Mar. 1. Received $465 from John Pate to redeem note due 

 today. 



Mar. 15. Sold to Jones Elevator Co., on account 75 bu. wheat 

 at $1.75. 



Mar. 18. Sold for cash 1 T. oats straw at $6.50. 



Apr. 5. Frank Anderson used dairy products valued al 

 and eggs and poultry valued at $10 during the first three months, 

 while Fred's family used dairy products valued at $20 and eggs 

 and poultry valued at $5. (Debit the Drawing accounts*) 



