Property Accounts 



25 



BALANCED CASH ACCOUNT, AND A NEW ACCOUNT OPENED 



Accounts with all other kinds of property, 

 whether wheat, horses or apples, are kept just 

 as the cash account is, and 



When the farmer buys 

 property he writes the value 

 of the property on the left 

 or debit side. 



When the farmer sells 

 property he writes the value 

 of the property on the right 

 or credit side. 



Most kinds of property other than cash are 

 handled with either profit or loss. In order to 

 find the amount of profit or loss the farmer must 

 first, before closing the account, find out the 

 value of the property on hand and add this 

 amount to the credit side of the account, and 

 then balance the account. If the balance appears 

 on the debit side it shows that a profit was made 

 on the transaction; if the balance is on the credit 

 side the transaction tvas a loss. 



