﻿LIVE-STOCK SHIPPING ASSOCIATIONS. 



21 



NET WORTH. 



(1) 



(3) 



liabilities over 

 of opening the 



Debit : 



With the excess of 

 assets at the time 

 books. 



(2) With the par value of shares of stock 

 retired, or memberships redeemed 

 where such memberships are redeem- 

 able. 



With the net loss transferred from 

 the loss and gain account at the end 

 of the fiscal year. 



Credit : 



(1) With the par value of shares of stock 

 outstanding at the time of opening 

 the books. 



(2) With the excess of assets over liabili- 

 ties at the time of opening the 

 books. 



(3) With the par value of additional 

 shares of stock sold. 



M) With the membership foes paid in, in 

 case of associations incorporated 

 under laws which hold memberships 

 redeemable. 



(5) With net profits transferred from the 

 loss and gain account at the end of 

 the year. 



It seldom occurs that the total resources of a concern exactly equal 

 the total liabilities. If the resources at the time of opening the books 

 exceed the liabilities, a free surplus exists. This balance represents 

 the proprietors' (members' or stockholders') equity or interest in the 

 business and will be entered on the credit side of the net worth ac- 

 count. Sales of shares of capital stock, if any, will also be entered in 

 this column. However, if the liabilities or debts exceed the resources, 

 the balance will represent the amount by which the association is 

 unable to meet its obligations 100 cents on the dollar. The balance 

 in this case will be entered in the debit column. At the end of the 

 fiscal year the stockholders' or members' equity will be increased or 

 decreased by the amount of the net gain or net loss shown by the 

 loss and gain account. 



In addition to the above, the following accounts are frequently 

 needed. 



FEDERATION DUES. 



Debit : 

 payments of 



to 



(1) With payments of current dues 



State or district federation on ac 

 count of membership in such federa 

 tions. 



Credit: 

 (1) With deductions from proceeds of the 

 sale of live stock for federation 

 dues. 



Associations which are members of a State or district federation 

 of shipping associations, whose membership fees are collected out 

 of the proceeds of shipments, will need a federation dues account. 

 Any excess of the total collected over the amount paid out will repre- 

 sent the amount due the federation at any given time. 



YAED AND OFFICE EQUIPMENT. 



Debit : 



(1) With the value of equipment at the 



time of opening the books. 



(2) With the purchase price of additional 

 equipemnt bought. 



With the freight and installation costs 

 of equipment. 



(3) 



Credit : 



(1) With cost value of property sold or 



otherwise disposed of. 



(2) With estimated depreciation at the 



end of the fiscal year. 



Space is provided for two additional accounts. Associations which 

 have invested money in yard and office equipment should use one 

 pair of these columns for keeping track of such property. 



INDEBTEDNESS. 



Debit : 

 (1) With payments made in settlement of 

 outstanding obligations. 



Credit: 



(1) With the amount of outstanding obli- 



gations at the time of opening the 

 books. 



(2) With subsequent obligations incurred 



because of money borrowed or sup- 

 plies purchased on account. 



