CHAPTER XLL 



THE SHEEP FARMER'S BALANCE SHEET. 



It should be an easy matter for any sheep farmer to 

 jot down roughly in a note book or journal his financial 

 transactions as they occur during the year. From such 

 particulars he can make up a statement showing the 

 progress of his operations. The whole business should 

 not take him more than a few hours in the year. The 

 statement or balance sheet may be compiled in some-- 

 thing like the following manner : 

 DR. CE. 







Value of stock at 1/7/14 .. 500 Vahie of stock at 30/6/15 .. 600 



Tools, seeds, wire, etc. pur- Sheep sold during the year . . 200 



chased .75 Wool clip 150 



100 Valuable permanent im- 



50 provements effected, less 



25 allowance for depreciation 100 

 300 



Wages paid 

 Interest 011 loan 

 Bates, taxes, etc 

 Balance, net profit 



1,050 1,050 



If his living expenses come to, say, 150 a year, he 

 can deduct this from the net profits of 300, and add 

 the remaining 150 to the capital value of his farm, as 

 he estimated it at 1st July, 1914, or as he had been 

 offered for it, or as he had paid for it. This should, 

 less mortgage, show his exact financial standing. 



