BOOKKEEPING FOTl GRAIN ELEVATORS. 



C. FIXED ASSETS. 



Land(Cl). 



17 



Debit: 



Credit: 



1. With the cost of the hxnd owned as 



1. With tlie cost of any land sold. 



shown by tlie Bahmce Sheet iit 



- 



the time of opening the books. 





2. With any subsequent purchases of 





land. 





3. With the cost of any permanent im- 





provement, such as sewers, water 





mains, etc. 





If any land is sold at a price in excess of its cost, such excess should be credited 

 to surplus. 



In cases where a company installs a switch, the expenditure should be debited to 

 an account appropriately captioned and its value depreciated annually in the same 

 manner as the buildings. 



Buildings {C2). 



Debit: 



Credit: 



1. With the cost of the buildings as 



1. 



With the total cost of any buildings 



shown by the Balance Sheet at 





sold or destroved. 



the time of opening the books. 



2. 



With the total cost of parts of build- 



2. With the cost of all new construc- 





ings destroyed or replaced. 



tions. 





(Debit Reserve for Depreciation 



3. With the cost of all additions or 





on Buildings.) - 



alterations when such cost in- 







creases the utility. 







4. With the cost of replacements. 







See discussion of extraordinary losses page 28. 

 See also Reserve for Depreciation on Buildings. 



Machinery and Eqiiipment (CS). 



Debit: 



Credit: 



1. 



With the original cost of the machin- 



1. With the cost value of machinery 





ery and equipment as shown by 



or equipment sold, discarded, or 





the Balance Sheet at the time of 



destroyed, at which time debit 





opening the books. 



Cash account for the amcnnt real- 



2, 



With the cost of subsequent pur- 



ized, if any, and debit Reserve 





chases of machinery and equip- 



for Depreciation on Machinery 





ment,, including freight or express 



and Equipment for the difference 





on same, installation, etc. 



between the cost value and the 



3. 



With the cost of alterations and 

 improvements increasing the 

 efficiency of the capacity of the 

 plant. 



amount realized. 



The balance of this account represents the cost of machinery and equipment in use. 

 See discussion of extraordinary losses, page 28. 

 134432°— 19 3 



