32 



BULLETIN 985, IT. S. DEPARTMENT OF AGRICULTURE. 



N. GINNING EXPENSE, OPERATING. 

 Salaries and Labor Expense (Nl). 



Debit: 

 With the amount actually earned for 

 the period by all factory employees 

 as shown by the time sheet. (Credit 

 Pay roll account.) 



Credit: 

 With the debit balance at the close of 

 the fiscal year. (Debit Loss and 

 gain.) 



It will be noticed that this account is not charged with advances to employees not 

 with the amount -paid to employees, but with the amount actually earned during the 



period, 

 p. 26.) 



All payments, of whatever nature, are charged to Pay roll account. (See 

 Power Expense (N2). 



Debit: 



Credit: 



1. With the cost of all material of every 



1. 



With the debit balance at the end 



na/ture used as fuel in producing 





of the fiscal period. (Debit Losb 



power. 





and gain.) 



2. With the cost of electricity used for 







light or power. 







3. With the cost of water used in mak- 







ing steam power. 







All expenditures except for labor and for repairs to boilers, which are made directly 

 with the aim of producing power, must be charged to this account. 



Repairs (N3). 



Debit: 

 1. With the cost of repairs and renew- 

 als which are necessary to main- 

 tain the efficiency of the plant but 

 which do not add to its original 

 value. 



Credit: 

 1. With the debit balance at the close 

 of the fiscal period. (Debit Loss 

 and gain.) 



This account takes care of such items as a broken window pane or a new plank in the 

 approach. Where an entire piece of equipment is replaced, the old piece should be 

 charged to Reserve for depreciation and the new one charged to Machinery and equip- 

 ment, Buildings, or Office furniture and equipment, as explained under those accounts. 



Depreciation (N4). 



Debit: 

 1. With the amounts reserved out of 

 the profits of each fiscal period to 

 cover loss from wear, tear, and 

 obsolescence of office furniture 

 and equipment, machinery and 

 equipment, and buildings. (Credit 

 the corresponding reserve ac- 

 counts.) 



Credit: 

 1. With the debit balance at the close 

 of the fiscal period. (Debit Loss 

 and gain.) 



