402 



Farm Accounts. 



[SEPT., 



bad, for though the balance of profit and loss on the farm as a 

 whole is probably correct, yet the separate items from which 

 this balance is obtained and upon which the value of the accounts 

 depends, are purely fictitious. Thus, labour appears as a 

 dead loss, regardless of the fact that all or most of its may have 

 been profitably employed ; the difference between the buying 

 price and the selling price of live stock is taken as clear profit, 

 notwithstanding that when food and attendance are added the 

 balance may be on the wrong side ; feeding-stuffs are charged 

 as a dead loss, though they may have been fed with profit ; 

 corn sold appears as clear gain, in spite of the fact that the cost 

 of production has been considerable ; in fact the whole arrange- 

 ment, instead of being the last word in farm accounts, is valuable 

 only as a training in the principle of double entry. 



The first step in the arrangement of an accurate system 

 of farm accounts is for the farmer to decide under what headings 

 potential profits may be made. These headings will, of course, 

 vary according to individual farming practice, and those suitable 

 for a Kentish hop and jiruit grower will not be identical with 

 those required by a Wold sheep farmer. Accounts must then 

 be opened in a ledger under these headings, and it must be 

 borne in mind that sooner or later every item of income and 

 expenditure must be brought into one or other of these accounts. 

 Upon an ordinary mixed farm the accounts opened will be 

 somewhat as follows : — 



Cattle accounts ... ... ... ... I. Breeding stock. 



2. Store stock. 



3. Feeding stock. 



Sheep accounts ... ... ... ... 4. Breeding flock. 



5. Lambs. 



6. Feeding sheep. 



Pig accounts .. . ... ... ... ... 7. Breeding sows. 



8. Store pigs. 



9. Fatting pigs. 



Land accounts ... ... ... ... 10. Arable land. 



1 1. Meadow land. 



The farmer can further sub-divide these accounts to any extent . 

 Thus, different lots of cattle bought to fatten may each have a 

 separate account under the feeding-stock heading ; the milking 

 cows of one breed may have an account separate from that of 

 the cows of another breed ; in fact, the only limit to the amount 

 of sub-division is the time the farmer is prepared to devote to 



