COST ACCOUNTING 259 



counts, Pasture, Swine, Poultry, Cattle, Horses, Corn and 

 Household, each with its pro rata share of rent. Each class 

 of livestock is charged with the estimated rent of the build- 

 ing or buildings it uses. The household is charged with 

 the rent of house and garden. Corn or other crop account 

 is charged with the pro rated amount for use of cribs, 

 granaries, etc., used for storage purposes. Equipment 

 Expense account may be charged with an amount to repre- 

 sent the use of machine sheds. 



The entry suggested above indicated a credit to Notes 

 Payable. This assumes that notes are given for the amount 

 of the rent at the time of signing the lease. If no notes 

 are given, the landlord's account is credited instead of 

 Notes Payable. When notes for rent are given before the 

 beginning of the year to which they apply, Notes Payable 

 is credited and "19 Rent" account debited. The latter 

 account is then considered as a deferred resource until the 

 beginning of the fiscal year to which it applies. At the 

 beginning of the year, under the last named conditions, 

 the "19 Rent" account is credited and the several fields, 

 livestock and other accounts charged as described in the 

 preceding paragraph. 



The "19 Rent" account is made to fit the year of the 

 operations to which it applies. For example, when a 

 lease is signed and notes given in November, 1916, for the 

 fiscal year beginning March 1, 1917, the amount of the rent 

 is charged to "1917 Rent" account. 



(b) Under the share rent basis it is not definitely known 

 what the total rent is for the year. Accordingly, it pre- 

 sents a very complex situation unless one resorts to esti- 

 mates and makes entries similar to those explained for 

 cash rent, above. 



The following procedure is suggested as the most prac- 

 tical under the ordinary share rent agreement: 



At the beginning of the year to which the lease applies, 



