24 BULLETIN 811, U. S. DEP^R'il^MENT OF AGRICULTURE. 



Surplus {1-2). 



Debit: 



With the amount of dividends 

 declared by the board of directors. 

 (Credit Dividend account.) 



With any net loss at the end of a 

 fiscal period as shown by a debit 

 balance of the Loss and Gain 

 account. (Credit Loss and Gain.) 



With amounts reserved for Sinking 

 Fund. (Credit Reserve for Sink- 

 ing Fund.) 



With adjustments decreasing the 

 profits of a previous fiscal period. ^ 



Credit: 



With the amount of surplus at the 

 time of opening the books as shown 

 by the balance sheet. 



With the amount of net gain at the 

 end of each fiscal period, as shown 

 by a credit balance of the Loss 

 and Gain account. (Debit Loss 

 and Gain.) 



With amounts of sinking fund expen- 

 ditures when such fund is dis- 

 bursed. (Debit Reserve for Sink- 

 ing Fund.) 



With adjustments increasing the 

 profits of a previous period. ^ 



In case the liabilities and outstanding capital stock exceed the total assets at the 

 time of opening the books, the entry to this account will be a debit and will indicate 

 a deficit. The same will be true if, at any future time, this account has a debit balance. 



Loss and Gain {1-3). 



Debit: 



1. At the end of the fiscal year with 



any debit balances of income* 

 accounts (showing losses) and with 

 the debit balances of the expense 

 accounts.^ (At this time credit 

 such accounts.) 



2. W^ith the storage liability at the end 



of the fiscal period. (Credit Stor- 

 age Liability.) 



Credit: 



1. With the credit balances of all in- 



come accounts at the close of the 

 fiscal period. 2 (Debit Income 

 Accounts.) 



2. At the beginning of the fiscal period 



with the storage liability at. the 

 close of the previous fiscal period. 

 (Debit Storage Liability.) 



At the end of the fiscal period, if the credits to this account exceed the debits, a 

 net gain is shown; but if the debits exceed the credits, a net loss has resulted from the 

 year's operations. This account will be closed by a debit or credit, as the case may be, 

 to Surplus account. 



1 Errors and omissions are often found whicli apply to a previous fiscal period. Adjustment of such 

 items will bo mcide throiigli the Surplus account as indicated. 

 - See accounts under Income Accounts in the classification. 

 3 See accounts under Expense Accounts in the classification. 



