12 



FARM ACCOUNTING 



ited with the rental value of real property used in any of the departments, as for dairy, for 

 storage of products, etc. Other. values directly from the land as wood, wild fruits, etc., 

 would credit to this account. If the farm is operated to full capacity, the real estate account 

 should show a net profit of 2 to 6 per cent. 



Chattels. This account is charged with the value of all personal property not pertain- 

 ing to any department of farm work. Such property as is appropriated to any special de- 

 partment is charged to that department and a corresponding credit made to Chattels account. 

 It will be noted that this account would not ordinarily show much gain or loss, but simply rep- 

 resents personal property not classified. 



Crops. When active "farming opens, an account is opened with each crop; as corn, oats, 

 potatoes, etc. Each of these is to be charged with the rental value of land, seed, labor, and 

 other cost, and credited with product. 



Dairy. Charged with the cost and maintenance of the milch cows, and credited with 

 the product. 



Teams. Charged with cost and maintenance of farm draft animals and all farm 

 machinery dependent on horse power; and credited with the value of their daily use. 



Poultry, Garden, Orchard, and all similar accounts are charged with entire cost of 

 rental, stock, labor, etc., and credited with product. 



Labor. Charged with wages and board of laborers and credited when the labor done 

 is distributed to the departments affected. 



BLOCKING OUT THE YEAR 



It is impossible to decide in any one day the entire operations of a year on the farm. 

 But the main divisions of industry can be blocked out on January 1, and such changes as are 

 made from the original plan or additions to it can be considered and entered at a later date. 



Mr. Atkinson divides the accounts for the year's work as follows : 



The products of the farm will be charged to Merchandise account together with the 

 rental of the buildings used for storage purposes. Make a journal entry debiting Merchan- 

 dise with inventory Nos. 38 to 51, and 6% on No. 7, crediting Chattels and Real Estate. 



The following is the entry: 



ZjJj'/d 



«/ 



6 



/6 





/A 



o^> 



A* 



•9 



For the Dairy he will use Building (No. 4), Cows (Nos. 8 to 16), Separator (No. 19), 

 and Churn and attachments (No. 20), as listed in the inventory. 



Charge Dairy with 6% on $950 for rental of building one year and credit Real Estate, 

 also with the inventory value of Nos. 8 to 16, 19, and 20 ; and credit Chattels. 



Charge Teams account with 6% on No. 3 and with inventory value of Nos. 21 to 25, 

 and 27 to 35 ; crediting Real Estate and Chattels. 



Charge Hogs account with No. 36 and 6% on No. 5 ; making proper credits. 



Charge Poultry with Inventory No. 37 and 6% on No. 6, making proper credit. 



Charge Orchard with $6 rental on one acre of ground and the trees on it, the latter 

 valued at $120. Credit the entire amount to Real Estate. 



