18 BULLETIIS" 811, IJ. S. DEPARTMElsrT OF AGRXGITLTITEE. 



Office Furniture and Equipment ( C4) ■ 



Debit: 



Credit: 



1. With the original cost of office fur- 



1. 



With the cost of any item sold, 



niture and equipment as shown 





discarded, or destroyed. (See 



by the Balance Sheet at the time 





credit under Machinery and 



of opening the books. 





Equipment.) 



2. With the cost of additional equip- 







ment purchased, including trans- 







portation, installation, etc. 







See discussion of extraordinary losses, page 28. 



,D. ACCOUNTS PAID IN ADVANCE. 



Prepaid Insurance (Dl). 



Debit: 



Credit: 



1. With the amount of unexpired 



1. At the close of a fiscal period with 



insurance premiums at the time 



the insurance premiums expii-ed 



of opening the books as sho-wn by 



during the period. (Debit In- 



the Balance Sheet. 



surance Expense.) 



2. With insurance premiums paid. 



2. With refunds on canceled policies. 



(Credit Bank account.) 





The debit balance of this account is an asset and should be shown on the Balance 

 Sheet. 



Printing and Stationery — Inventory {D2) . 



Debit: 



1. With the value of unused printing 



and stationery on hand at the 

 time of opening the books as 

 shown by the Balance Sheet. 



2. With purchases of printing and 



stationery. 



Credit: 

 •1. At the end of the period with the 

 amount consumed or discarded 

 during the' period. (Debit Print- 

 ing, Stationery, and Office Sup- 

 plies Expense.) 



The balance of this account is an asset and should be shown on the Balance Sheet. 



• E. OTHER ASSETS. 



Railroad Claims {El). 



Debit: 



Credit: 



1. With the valid claims at the time 



1. With amounts collected on account 



of opening the books as shown by 



of claims entered. (Debit Cash.) 



the Balance Sheet. 



2. With the net loss due to leakage in 



2. With claims entered against trans- 



transit. (Debit Leakage in Tran- 



portation companies for loss due 



sit account.) 



to leakage in transit. (Credit 





the Grain or Merchandise account 





concerned.) 





