Personal and Contingent Accounts 27 



If both sides of this account were added, it 

 it would be seen that the entries on the right or 

 credit side amount to $25.75 more than the entries 

 on the left or debit side. The balance, then, of 

 $25.75 is the amount the farmer owes John Smith. 

 If the debit entries were more than the credit 

 entries it would show that John Smith owed the 

 farmer. 



Personal accounts should be kept with each 

 person or firm with whom the farmer deals. 



When the farmer sells his wheat there must be 

 a buyer. There cannot be a sale when no one 

 will buy. When the farmer buys 100 pounds of 

 sugar, the sugar is taken from the merchant's 

 property and added to the farmer's property. 

 When the man and team spend several days fitting 

 land for wheat, the value of the work (man's 

 board and wages, keep of team, wear and tear of 

 team and implements) is taken from the farmer's 

 property in cash or produce and added to his 

 investment in the wheat field. In every trans- 

 action there is some person who receives value 

 and some person who gives value; or value is 

 added to one kind of property and taken from 

 another. 



Incidental accounts are those that cannot logi- 

 cally be charged to any specific account, either to 

 definite persons or to property. These are ex- 

 plained later (p. 35), 



