FARM ACCOUNTING 



sum of these, $194.63, will show a net gain for the month if greater than the last balance 

 or a net loss if less than the last balance. 



Continuing Next Month". Carry the inventory amounts forward (red ink), also num- 

 ber of fowls and investment balance (black ink) as before. 



QUESTIONS 



1. How many hours were given to poultry raising during the month ? 



2. How would you find the average egg prodution per fowl? 



3. How much is now invested in the poultry industry? 



4. What is the value of the entire investment for the month ? 



5. What is the total of returns for the month? 



6. How would you find the total feed cost for the month? (Ans. By subtracting the 

 inventory total of feed on hand from the entire total of feed column.) 



7. How can the total profit for the month be found? (Ans. By subtracting the last 

 investment balance from the total present value of all property that has been charged in the 

 several debit columns.) 



8. How should a following month's record be opened? 



9. Why is interest included as a charge on the last day of the month ? 



10. How can the actual investment in this business on a given date be found? 



Farm Set 



Jan. 1, 1911. E. A. Atkinson, farmer, decides to keep a full set of books so arranged as 

 to show the following facts of his farming business: 



1. The amount actually invested at any one time in any department. 



2. The profit or loss on any department. 



3. The outlay necessary for the profitable maintenance of any department. 



4. The waste, if any r that may be eliminated. 



5. The amount and kind of his resources and liabilities. 



6. The net profit of farming. 



OPENING THE BOOKS 



Inventory. The first step in preparing to open the books is to take an inventory of all 

 property and debts. On a farm this inventory should be listed on journal paper with great 

 care to include everything of value about the place and to give to it a fair valuation. After 

 the first inventory, subsequent inventories will be found less difficult, as the first one will be on 

 record for comparison. When the inventory is completed, copy it neatly in the journal. The 

 following are the items : 



