30 



BULLETIN 811, V. S. DEPAETMEISTT OF AGEICULTUEE. 



In the smaller companies it is believed advisable to ignore accrued interest items. 

 In sucb cases but one interest account would be raised in the ledger, which would be 

 operated as follows: 



Inte7'est. 



Debit: 



Credit: 



1. With interest payments. 



1. With interest received. 



2. With discount on notes receivable 





discounted. 





Close the account at the end of the fiscal period by a debit or credit, as the case may 

 be, to Loss and Gain . 



Re7it and taxes (iV4). 



Debit: 



Credit: 



1. With the payments made on ac- 



1. At the beginning of the fiscal period 



count of rent and taxes. 



with the accrued rent and taxes 



2. With accrued rent and taxes at the 



at the close of the previous fiscal 



close of the fiscal period. (Credit 



period. (Debit Accrued Rent and 



Accrued Rent and Taxes.) 



Taxes.) 





2. With the debit balance at the end of 





the fiscal period. (Debit Loss and 





Gala.) 



Insurance (N5). 



Debit: 



Credit: 



1. At the close of the fiscal period 



1. With the debit balance at the close 



with the insurance premiums ex- 



of the fiscal period. (Debit Loss 



pired during the period. (Credit 



and Gain.) 



Prepaid Insurance.) 





Lossfi'om bad accounts (N6). 



Debit: 



Credit: 



1 . With the amounts reserved out of the 



1. With the debit balance at the close 



profits to cover the probable loss 



of the fiscal period. (Debit Loss 



from bad debts. (Credit Reserve 



and Gain.) 



for Bad Debts.) 





Miscellaneous (N7). 



Debit: 



Credit: 



1 . With expenses which are not charge- 



1. With the debit balance at the close 



able to any of the foregoing ac- 



of the fiscal period. (Debit Loss 



counts. 



and Gain.) 



