16 BULLETIN 811, U. S. DEPARTMEISTT OF AGEICULTURE. 



Grain and Merchandise Inventory (J.7). 



Debit: 



Credit: 



1. With the value of mercliaiidise and 



1. 



With the amoimt necessary to close 



grain on hand as shown by the bal- 





this account at the beginning of 



ance sheet at the time of opening 





a new fiscal period. (Debit the 



the books. 





various merchandise and grain 



2. With the value of grain and mer- 





accounts.) 



chandise on hand and in transit at 







the end of the fiscal period . (Credit 







the various grain and merchandise 







accounts.) 







This account is raised for the purpose of showing this asset on the books at the time of 

 closing. It is closed into the various grain and merchandise accounts immediately 

 upon reopening the books for the following fiscal period. 



B. ACCRUED ASSETS. 



Accrued Interest — Notes Receivable (Bl). 

 (To be used only by the larger companies. See also Interest account, No. N3.) 



Debit: 



Credit: 



1. With the accrued interest on Notes 



1. With interest received. 



Receivable as shown by the bal- 





ance sheet at, the time -of opening 





the books. 



■ 



1 . With the interest accrued on Notes ' 





Receivable during the period. 





(Credit Interest account.) 





The balance of this account represents the accrued interest on notes receivable 

 and should be shown as an asset on the Balance Sheet. 



Accrued Storage {B2). 



Debit: 



Credit: 



1. With the accrued storage as shown 



1. 



At the beginning of a new fiscal 



by the balance sheet at the time 





period with the amount previously 



of opening the books. 





debited to this account. (Debit 



2. With the accrued storage at the close 





Storage account.) 



of the period. (Credit Storage 







account.) 







This account is raised to show on the books, at the time 5f closing, the earning 

 from storage which has not yet been collected but which is an earning of the period. 



