28 BULLETIN 590, U. S. DEPARTMENT OF AGRICULTURE. 



The manager should include in his report a brief summary regard- 

 ing other features of the operation of the business for examination by 



the directors. 



CLOSING THE BOOKS. 



Preparatory to closing the books, an inventory should be taken of 

 all supplies on hand, and this schedule should be written up in per- 

 manent form. With this should be included a schedule of expense 

 items, such as postage, stationery and supplies on hand, and of the 

 unconsumed balances of such accounts, as prepaid insurance and pre- 

 paid taxes. 



The balances of all expense accounts and income accounts should 

 be transferred to the profit-and-loss account in order to ascertain the 

 net profit or loss for the season's operations, and this balance then 

 should be transferred to the surplus account. After the books are 

 closed and a post-closing trial balance has been taken to prove the 

 mechanical accuracy of the work, the various financial and cost 

 statements are made up for presentation to the members. 



As a guide for the preparation of a financial statement, or balance 

 sheet, to portray the condition of the business at the close of the year, 

 the statement shown on page 29 is submitted. 



