BOOKKEEPIiSTG TOR GRAIlSr ELEVATORS. tio 



The above Journal outrios when posted to the Ledger will balan'\' 

 all Income and Expense accounts and leave only the Asset and Lia- 

 bility accounts open. At this point all the balanced accounts should 

 be ruled with a double red line beneath the footings. 



The credit balance of the Loss and Gain account represents the 

 net profit for the year. 



A Trial Balance should now be taken to prove that the equality of 

 the debits and credits of the Ledger accoxmts has been maintained, 

 after which we are ready to proceed with the Balance Sheet and 

 Income and Expense Statements. 



In compiling the Balance Sheet it is necessary only to refer to the 

 Ledger accounts and draw off the balances shown in the Asset and 

 Liability accounts, entering them as indicated on the form of Balance 

 Sheet provided herewith. The purpose of the Balance Sheet is to 

 set forth the financial position of the company at a given time. 



It will be noted that while the reserves for depreciation and bad 

 accounts are shown on the Ledger as a liability they appear on the 

 Balance Sheet as a deduction from the assets. 



- BALANCE SHEET. 



The investigations made by the Bureau of Markets have disclosed 

 the fact that many country elevators have never made either an 

 Income and Expense Statement or a Balance Sheet. The form of Bal- 

 ance Sheet which follows conforms with that suggested by the Federal 

 Reserve Board and is recommended as a simple yet comprehensive 

 exhibit of the financial position of the company. 



