412 FARM MANAGEMENT 



whether the farm as a whole had been profitable by 

 charging all items of expense against it and crediting 

 the farm with all produce raised, such an account would 

 be of little value in learning which lines or enterprises 

 were affording the profit. Therefore, it is deemed nec- 

 essary to open an account with each enterprise, just 

 as a storekeeper opens an account with each customer. 

 Against each enterprise must be charged all items of 

 expense, such as man and team labor at the cost of 

 furnishing such labor, machinery, cost, and deprecia- 

 tion, land rental, or interest, and anything else that may 

 add to the cost of production. The enterprise should 

 be credited with all revenue arising from the product 

 whether sold or used as food. If used as food, it should 

 be credited at the market price for such products in 

 the neighborhood. The difference between the debit 

 and credit accounts will show whether the enterprise 

 has been profitable. If unprofitable after a fair trial, 

 the methods should be corrected or the enterprise 

 dropped for a more profitable one. 



The form of accounts should be as simple as possible 

 so as to demand little time. A card ledger account 

 with each enterprise, upon which may be entered di- 

 rectly all charges or credits, will be found convenient 

 and suited to most forms of business. The balances 

 from the various enterprises show the profit or loss 

 from each, and when brought together on a balance 

 sheet show the profit or loss from the farm as a whole, 



