34 



BULLETIN 985, U. S, DEPARTMENT OF AGRICULTURE. 



Taxes (04). 



Debit: 



1. With the payments of all taxes (ex- 



cept income taxes). • 



2. With accrued taxes at the close of 



the fiscal period. (Credit Ac- 

 crued rent and taxes.) 



Credit: 



1. At the beginning of the fiscal pe- 



riod with the accrued taxes at 

 the close of the previous fiscal 

 period. (Debit Accrued rent 

 and taxes.) 



2. With the debit balance at the end 



of the fiscal period. (Debit Loss 

 and gain.) 



It should be noted that income taxes must not be charged to this account, but to 

 Surplus. 



Loss From Bad Accounts (05). 



Debit: 

 1. With the amounts reserved out of 

 the profits to cover the probable 

 loss from bad debts. (Credit Re- 

 serve for bad debts.) 



Credit: 

 1. With the debit balance at the close 

 of the fiscal period. (Debit Loss 

 and gain.) 



Miscellaneous Expense (06). 



Debit: ■ 

 1. With the cost of any items of ex- 

 pense not chargeable to any 

 other account. 



Credit: 



1. With the debit balance at the close 

 of the fiscal year. (Debit Loss 

 and s;ain.) 



To this account should be charged such expenses as donations to charitable organi- 

 zations or any other expense that can not properly be charged to any of the other 

 accounts. 



P. TRADING ACCOUNTS. 



Seed-Cotton Purchases (PI). 



Debit: 



Credit: 



1. With the value of purchased seed 



1. W T ith the value of the inventory of 



cotton on hand at the beginning 



purchased seed cotton on hand at 



of the fiscal period. (Credit In- 



the end of the fiscal period. 



ventory, account No. A5.) 



(Debit Inventory, account No. 



2. With the cost of any seed cotton 



A5). 



purchased. 



2. With the debit balance at the close 





of the fiscal period. (Debit Loss 





and gain.) 



To the cost of purchasing seed cotton must be added the cost of ginning and baling 

 it, in order to learn its total cost. 



Ginning Purchased Seed Cotton (P1a). 



Debit: 



Credit: 



1. With the cost of ginning purchased 



1. 



With the debit balance at the end 



seed cotton. (Credit Loss and 





of the fiscal period. (Debit Loss 



gain, account No. 13.) 





and gain.) 



2. With the cost of bagging and ties 







used in baling purchased seed 







cotton. (Credit Bagging and ties 







sales.) 







