286 FARM ACCOUNTING 



a few years first. After keeping such records he would then 

 have data available that would be of material benefit in 

 making estimates for the same farm in one or two suc- 

 ceeding years. 



Another modification in the operation of a cost system 

 consists in the elimination of field accounts. Such a method 

 causes the crop accounts to be charged direct with all costs 

 incurred in their production, harvesting and sale. This 

 method is open to the criticisms mentioned under Field 

 Accounts, General. 



After the Books Are Closed. After the details of clos- 

 ing have been followed out as outlined above, the ledger 

 accounts are in a position to start the next year's busi- 

 ness. They are also in condition for further analysis or 

 interpretation. The most common forms of analysis and 

 interpretation have been presented in connection with the 

 study of the Loss and Gain Statement, Statement of Re- 

 sources and Liabilities, Farm and Individual Loss and 

 Gain Statement, and Change of Wealth Statement. Other 

 methods of analyzing and interpreting accounts are pre- 

 sented in ' the next chapter, "Interpretation of Cost Ac- 

 counts. ' ' 



ILLUSTRATIVE PROBLEMS CHAPTERS VIII AND IX 



(Problem 1 may be assigned after a study of Chapter VIII, 

 but Chapter IX should be studied before the problem is com- 

 pleted.) 



Note. Problem 1 is intended to illustrate the operation of a 

 partial cost system resulting in the determination of depart- 

 mental costs without finding some of the results essential to good 

 form management. That is, it provides for proper distribution 

 of feed, labor, horse labor, depreciation, interest, etc., over the 

 productive elements, but does not show costs of production in 

 the several fields. This method is followed here primarily to 



