52 The Farmer's Business Handbook 



The last seven credits to Tools cannot be entered 

 until all other entries have been made and the 

 inventory at the end of the year has been taken. 

 Turn to page 62 and note that the sum of all 

 debit charges against Tools amounts to $447.79, 

 and on pages 12 and 63 the second inventory 

 amounts to $396. This leaves a deficit or appar- 

 ent loss of $51.79. 



It is evident that the tool account, which is 

 simply one of convenience, should show neither 

 profit nor loss. Since several of the other ac- 

 counts or divisions have received benefit in the 

 use of tools, they should be charged such amounts 

 for their use as appears to be just. This deficit, 

 $51.79, should be distributed equitably among the 

 accounts using the tools. Here good judgment 

 must be used. 



Since the teams, in order to be efficient, must 

 use wagons and other expensive tools, $12 has 

 been charged to them. In like manner other 

 accounts have been charged with respective sums, 

 the total of which just equals the $51.79, which 

 makes the debit and credit sides exactly balance, 

 as they should. 



The work reports, the blotter and inventories 

 will all have been posted before this distribution 

 of the tool account can be made. When it is 

 made and entered in the blotter and posted to 

 the ledger, the ledger is ready to be closed. 



