36 FARM ACCOUNTING 



Dairy — Four cows remaining - inventoried at the beginning of the year Nos. 8, 10, 16, 

 and one purchased on Jan. 14 for $39.50, amount all told to $184.50 less 5% average depre- 

 ciation, or $175.27. Items Nos. 19 and 20 of first inventory less 12% depreciation equal $88. 

 Total Dairy inventory $263.27. 



Teams — Five horses Nos. 21, 22, 23, and 25, and one bought Feb. 13, were charged at 

 $680. They are now considered to have depreciated in value 10% being now worth $612. 

 Machinery Nos. 27 to 35 inventoried Jan. 1, last, at $333 have depreciated in value 12% be- 

 ing now worth $293.04. This gives a total teams inventory of $905.04. 



Hogs — There are now on hand 60 head, 6000 lb. worth $5.50 per cwt, or $330. 



Poultry— On hand worth $18.20. 



Orchard — Stock of trees growing worth $100. 



Small Fruit — Stock of shrubbery growing worth $60. 



After completing the statement of resources and liabilities with difference showing net 

 worth, make a detailed list of loss and gain accounts showing net gain. Also show this 

 gain added to investment at opening giving present worth to agree with the amount shown 

 in the financial statement above. 



CLOSING THE BOOKS 



Enter the inventories to the credit of their respective accounts in the ledger (red ink), 

 close the accounts on pages 3 to 20 into Loss and Gain (open Loss and Gain account on lower 

 half of page 20) and close Loss and Gain account into proprietor's* account. Balance the 

 proprietor's account, carry down inventories and take a trial balance under date of January 1. 



Remark — The person who has carefully watched the accounts of his farm through the 

 period of one year is in position to see the relative gains and losses of different kinds of farm 

 industry. He should now compare his results with the results of others as given in the 

 records of agricultural experiment stations, the information contained in the best agricultural 

 papers, and results obtained by other farmers in his own locality working under similar con- 

 ditions. However, conditions are so diverse that he must in the main look to his own books 

 rather than to the records of others for his best guidance. A careful record of cost and pro- 

 duction, kept through a period of years, will certainly pay many times over for the time and 

 attention given to it. 



To this should be added the knowledge of the worth of the business as a business, and 

 the observance of the appreciation or depreciation of real and personal property. These facts 

 tend toward suitable bargains being made in case of purchase or sale. They also tend to- 

 ward a conservation and an average increase of the general values about him which in the 

 current language of the day are termed^ — his worth. 



PUBLISHERS' NOTICE 



The publishers of Farm Accounting have in stock bound and loose leaf blank books in 

 sizes suited to the requirements of farm bookkeeping. For description and prices, inquire 

 of the school where this course is taught, or write to 



GOODYEAR-MARSHALL PUB. CO., 



Cedar Rapids, Iowa. 



