Similarly a payment for wages would be 

 entered on the Payment side in the cash 

 column and in the " Wages " analysis 

 column. 



At the bottom of each page all the 

 columns are added up. As for every entry 

 in the cash column there is a correspond- 

 ing entry in the analysis column, it is clear 

 that if the accounts have been kept 

 accurately the total of the cash columns 

 must equal the total of the analysis 

 columns and the totals should not be 

 caiu'ied forward to the top of the next 

 page until these figures agree. In this 

 way a check is kept on the accuracy of 

 the entries throughout the year. 



At the end of the year the receipts for 

 all sales of Apples, Plums, Currants, etc., 

 will be shown, and on the payment side 

 the total expenditure for Wages, Manures, 

 Rent, Rates and Taxes, etc. 



We will say, for example, that the 

 receipts and payments have been as 

 follows : — 



Reckipts. 



£ s. d. 



Apples and pears 250 



Plums 100 



Gooseberries 50 



Vegetables 80 



Sundry receipts 10 



Payments. 



£ s. d. 



Wages 180 



Manures 90 



Rent, rates and taxes 80 



Tradesmen's bills 50 



Sundry payments 15 



This leaves a balance of receipts in ex- 

 cess of payments of £75. In order, how- 

 ever, to obtain the actual results of the 

 year's transactions and to arrive at the 

 profit or loss the following items must be 

 included : — 



(a) The valuations at the beginning 

 and at the end of the year. 



(b) The debts owing to and by the 

 business. 



(c) The produce from the farm con- 

 sumed in the house during the 

 year. 



(a) The valuation at the beginning of the 

 year must be entered on the Payment 

 side, and that at the end of the year on 

 the Receipt side. 



183 



(b) The debts owing to the business 

 may be taken either from the Invoice 

 Book, an example of which is shown below, 

 or from the Ledger, if such a book is kept. 

 The amount must be entered on the receipt 

 side. 



The unpaid bills will provide the amount 

 owing by the business, which amount 

 must be entered on the Payment side. 



(c) The produce consumed in the house 

 should be entered daily throughout the 

 year in a book provided for the purpose, 

 and valued at market price, less the ex- 

 penses of marketing, and the amount must 

 be entered on the Receipt side. (Note. — 

 This information is required by the Income 

 Tax authorities). 



The statement of accounts for the year 

 will then be as follows : — 



Income. 



£ s. d. 



To sale of apples and pears ... 250 



,, ,, ,, plums 100 



,, ,, ,, gooseberries 50 



,, ,, ,, vegetables 80 



,, Sundry receipts 10 



,, Debts owing to me at the 



end of the year 120 



,, produce consumed in house 50 

 ,, valuations at the end of the 



year 1,565 



£2,225 



Expenditure. 



£ s. d. 



By wages 180 



,, manures 90 



,, rent, rates and taxes 80 



,, tradesmen's bills 50 



,, sundry payments 15 



,, unpaid bills at the end of 



the year 40 



,, valuations at the begining 



of the year 1,490 



Balance, profit 280 



£2,225 



As will be seen by the above statement 

 a profit of £280 is the result of the year's 

 trading. Such a statement is all that is 

 required for claiming repayment of 

 Income Tax. 



