220 TH£ BUSINESS OF DAIRYING 



sales in the accompanying cash account are entered 

 but once a week — the ordinary dairyman would per- 

 haps enter them daily. He should be sure that the 

 cash on hand at the end of any month agrees per- 

 fectly with the balance in his cash book. 



LEDGER 



In the ledger we keep an account with persons. 

 On January ist, John Smith owed a balance of $io, 

 which he paid January 20th, thus closing his ac- 

 count. At the beginning of the month Henry Hud- 

 son owed a balance of $65.16, but on January 23d 

 paid $55.16, leaving a balance January 31st of $10, 

 which is an asset. On January 1st we owed J. John- 

 son $25, but on January 22d paid him $15 on ac- 

 count, leaving us $10 in his debt — a $10 liability. 

 These are the only forms of accounts which arise 

 in ordinary transactions, and if the fundamental 

 principles are understood the dairyman need have 

 no difficulty in keeping his own business accounts. 



INVENTORY 



The receipts and expenditures alone do not show 

 the real profits and losses of the business during the 

 year. It is necessary to take an inventory of the 

 property on hand. This should include property of 

 every description. The difference between the as- 

 sets and the liabilities will give the net value. It is 

 of interest to keep these records year after year, to 

 make comparisons. 



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