26 



The Farmer's Business Handbook 



Suppose the farmer is growing wheat and wants 

 to know whether he is making or losing. His 

 account with property in the form of wheat is as 

 follows: 



WHEAT ACCOUNT (1900 Crop) 



Personal accounts are kept with the men or 

 firms (that is, with persons) with whom the farmer 

 deals. When accurately kept, they show exactly 

 what he owes and what is due him from others. 

 A personal account appears as follows: 



JOHN SMITH 



In other words, 



When the farmer sold John 

 Smith goods or paid him cash, 

 the farmer wrote the amount 

 on the left or debit side of 

 the account, 



When John Smith worked 

 for the farmer or when the 

 farmer bought goods from 

 him, the farmer wrote the 

 amount on the credit side, 



