Gains and Losses 75 



usually written in red ink, that they may be 

 easily and quickly distinguished from entries 

 which have been posted either from inventories, 

 work reports or blotter. 



The lines used when the accounts are closed 

 should also be in red ink. Their number and 

 position varies somewhat, but the common form 

 is found in Teams account, the dotted lines being 

 the ones which are usually in red ink. 



The accounts being balanced and closed, they 

 are now in the proper form for making a detailed 

 statement of gain and loss, and also a statement 

 of total net gain or loss. The gain and loss state- 

 ment will require careful inspection by the stu- 

 dent who is studying farm accounts without a 

 teacher. Wherever an entry "To balance" is 

 found there is profit ; wherever " By balance " there 

 is loss. It will be noticed that, in the cash ac- 

 count, the form is changed, and reads "By cash 

 on hand." This really sets forth the fact that 

 there is enough actual cash on hand to make 

 the account balance. In the two personal ac- 

 counts, the entries are "To" or "By" amount due 

 to balance. In all three of these cases there is 

 an actual value equal to the difference between 

 the debit and credit sides, therefore these ac- 

 counts do not show either gain or loss. The gain 

 and loss account of the sample ledger appears 

 as follows: 



