CLASSIFICATION" OF LEDGER ACCOUNTS FOE CREAMERIES. 



11 



The account, Loss, boiler explosion, should he periodically reduced by the following 

 entry : 



Debit. Credit. 



$10 Expense, boiler explosion. 



Loss, boiler explosion $10 



(For periodical charge to amortize loss result- 

 ing from explosion.) 



At theclose of the fiscal year the account Expense, boiler explosion, should bo car- 

 ried to Loss and Gain account. 



Tools (C 4). 



Debit: 



Credit: 



1. With the estimated value of all the 



1 . With the book value of any tool sold 



small tools as shown by the Balance 



and not replaced. 



Sheet at the time of opening the 





books. 





This account should include such articles as hammers, wrenches, and small hand 

 tools, which will under ordinary circumstances last for a period of less than three years. 

 Further discussion of this subject will be found under Tool Replacement. The sup- 

 ply of tools on hand should be inventoried at least once each year, and any large varia- 

 tion from this account should be adjusted . 



Motor Vehicles (C 5). 



Debit: 



Credit: 



1 . With the cost of any trucks as shown 



1. With the book value of trucks dis- 



by the Balance Sheet at the time 



posed of or destroyed. 



of opening the books. 





2. With the purchase price of new 





trucks. 





Office Furniture and Equipment (C 6). 



Debit: 



Credit : 



I. With the total costs as shown by the 



L With the book value of anv article 



Balance Sheet at the time of open- 



sold, discarded, or destroyed. 



ing the books. 





2. With additional purchases. 





3. With freight, express, or drayage 





charges incident to purchase. 





4. With cost of installation. 





This account should include such articles as desks, filing cases, adding machines, 

 typewriters, ledger, journal binders, etc., which should last for an indefinite period 

 of time. This equipment should be inventoried every year, and the account adjusted 

 to agree with the actual value. 



