280 , FARM ACCOUNTING 



6. Charge crop accounts with the cost of production, as 

 shown in the several field accounts. 



7. Charge any remaining undistributed expenses or costs 

 over the productive elements through General Expense 

 account. 



8. Close loss or gain on each productive element or "side 

 line" into Proprietor's Capital account through Loss and 

 Gain account, bringing down the inventory in each pro- 

 ductive account, ready to start the next year. 



Detailed Procedure in Closing. In order to accomplish 

 the main objects in closing, it is necessary to follow a 

 given definite order in making the entries. For that rea- 

 son, the following details are suggested in connection with 

 closing : 



Presume that rent or interest on land have been dis- 

 tributed at the beginning of the year, as suggested under 

 "Rent Distribution," "Interest on Land" and "Interest 

 on IJuildings." 



Px'gmning after the last entry for the regular transac- 

 tions of the year has been entered in the cash journal ; and 

 after the quantities and values have been recorded in the 

 labor, horse labor and feed records, perform the follow- 

 ing: operations: 



1. Make entry in cash journal debiting Labor and cred- 

 iting Household with the value of labor performed by 

 members of the household, including the operator, in con- 

 nection with farming operations ($600 a year for each 

 adult is a conservative figure to use for this purpose). 



2. Post all entries from the cash journal to the ledger, 

 including totals of special columns. 



3. Take a trial balance of the ledger, to test accuracy of 

 work before closing. 



4. Inventory all equipment, 'livestock, products and 

 miscellaneous supplies and enter them in the Comparative 



