28 



The Farmer's Business Handbook 



WHAT DOUBLE -ENTRY IS 



The person who receives value, or the property 

 which has value added to it, is a debtor; while 

 the person who gives value, or the property which 

 has value taken from it, is a creditor. It follows 

 that every value exchanged is both a debit and 

 a credit; so, in all accounts, for every amount 

 written on the left or debit side of one account, 

 there must be an equal amount written on the 

 right or credit side of some other account. 



Double-entry is writing each transaction twice, 

 on the debit side of one account and on the credit 

 side of another. 



Suppose a farmer sells 100 bushels wheat to the 

 miller on time ; the entry on his ledger would be : 



FARM PRODUCTS 



SAMUEL PIERCE, MILLER 



We have learned (page 23) that bookkeeping 

 is the art of making a systematic record of ac- 



