258 FARM ACCOUNTING 



account is found in the case of a second growth of hay 

 pastured. 



The field account should not be credited, for it is 

 merely an intermediate account for the purpose of ac- 

 cumulating costs of production to transfer to the crop 

 accounts, and for taking care of deferred charges for 

 labor, fertilizer and so on. It is not the nature of the field 

 that caused the livestock to be turned into it. It is tin- 

 managing ability of the farmer. As such, his ability t< 

 take advantage of by-products of the fields should be re- 

 corded in a separate account where its results may be 

 seen in the aggregate, at the close of each year. The bal 

 ance of the By-products account is closed into Loss and 

 Gain account at the close of the year. 



The value of the feed obtained by livestock in stubble 

 fields or corn stalks is determined in the same way as the 

 value of ordinary pasture feed. 



Rent Distribution. When farm rent is considered ;i 

 element increasing the cost of production, it is essentia 

 that the total rent should be distributed over the far 

 elements on a reasonable basis. The time and method <> 

 distributing rent are the two important factors that need 

 special consideration. 



As for the time of making the entry, it may be said 

 that the best time is at the beginning of the year when the 

 lease becomes effective. 



The method of distributing the rent depends upon 

 nature of the lease, whether it is on (a) a cash or (b) share 

 rent basis. 



(a) Under the cash rent basis, it is definitely know" 

 what the total rent is. The rent per acre of tillable and 

 pasture land can be calculated, also the rent of the build- 

 ings and barnyard. After the total for each field, and for 

 the buildings, has been determined, an entry is made 

 crediting Notes Payable and charging the several field ac- 



