FARM ACCOUNTING 



13 



Charge E. A. Atkinson {Personal account) with annual rental on No. 2 at 6%; credit- 

 ing Real Estate. 



Note that all property in the inventory has been charged to the departments concerned 

 except the ground use, which is to be charged to crops later, and the items of inventory Nos. 

 17, 18, and 26 which remain in Chattels account until a use or sale of them is made. 



Post the entries to the ledger and carry out the balances. Open an account with E. A. 

 Atkinson, personal, in the financial division of the ledger. Be sure to itemize in the ledger 

 what each charge or credit is for. 



Before going further, glance over the ledger. On the first page, $17881.68 shows that 

 the business owes this amount to the proprietor as net investment. The Cash account shows 

 a debit balance of $129.88 on hand. Merchandise account shows salable products of farm 

 awaiting disposition amounting to $2335.12. Real Estate account shows a balance of 

 $20,326.31 after the several credits are posted. The credits amounting to $410.19 represent 

 6% of the Real Estate — value in use. When all the fields are put into use, a total credit equal 

 to 6% of the original inventory value should appear. This profit will be reduced by charges 

 for taxes, maintenance, etc. Chattels account shows a debit balance of $250, representing 

 that value of chattels on hand for which no present use is found. The remaining general 

 accounts should show in the debit column the actual investment in each. The actual invest- 

 ment in each department is of great importance and should be carefully considered with a 

 view to getting returns proportionate to the investment. 



DAILY REPORTS 



The memoranda from which current entries are made should be reported daily on cards 

 and the cards held for entry, and after entry they should be placed in a package for possible 

 future reference. The card is so printed as to show where and how long a given person 

 worked during the day, what team work was done, the products resulting from the day's 

 work, and the general business dealings carried out by him. 



The above card shows on front and reverse sides the day's report of John Bentley, farm 

 hand, on Jan. 17, 1911. 



