BOOKKEEPING FOR GRAIN ELEVATORS. So 
The above Journal entries when posted to the Ledger will balance 
all Income and Expense accounts and leave only the Asset and Lia- 
bility accounts open. At this point all the balanced accounts should 
be ruled with a double red line beneath the footings. 
The credit balance of the Loss and Gain account represents the 
net profit for the year. 
A Trial Balance should now be taken to prove that the equality of 
the debits and credits of the Ledger accounts has been maintained, 
after which we are ready to proceed with the Balance Sheet and 
Income and Expense Statements. 
In compiling the Balance Sheet it is necessary only to refer to the 
Ledger accounts and draw off the balances shown in the Asset and 
Liability accounts, entering them as indicated on the form of Balance 
Sheet provided herewith. The purpose of the Balance Sheet is to 
set forth the financial position of the company at a given time. 
It will be noted that while the reserves for depreciation and bad 
accounts are shown on the Ledger as a liability they appear on the 
Balance Sheet as a deduction from the assets. 
BALANCE SHEET. 
The investigations made by the Bureau of Markets have disclosed 
the fact that many country elevators have never made either an 
Income and Expense Statement or a Balance Sheet. The form of Bal- 
ance Sheet which follows conforms with that suggested by the Federal 
Reserve Board and is recommended as a simple yet comprehensive 
exhibit of the financial position of the company. 
