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BULLETIN 811, IT. S. DEPARTMENT OF AGRICULTURE. 
In the smaller companies it is believed advisable to ignore accrued interest items. 
In such cases but one interest account would be raised in the ledger, which would be 
operated as follows: 
Interest. 
Debit: 
1 . With interest payments. 
2. "With discount on notes receivable 
discounted. 
Credit: 
1. "With interest received. 
Close the account at the end of the fiscal period by a debit or credit, as the case may 
be, to Loss and Gain. 
Bent and taxes (N4). 
Debit: 
Credit: 
1. With the payments made on ac- 
1. At the beginning of the fiscal period 
count of rent and taxes. 
with the accrued rent and taxes 
2. With accrued rent and taxes at the 
at the close of the previous fiscal 
close of the fiscal period. (Credit 
period. (Debit Accrued Rent and 
Accrued Rent and Taxes.) 
Taxes.) 
2. With the debit balance at the end of 
the fiscal period. (Debit Loss and 
Gain.) 
Insurance (X5). 
Debit: 
Credit: 
1. At the close of the fiscal period 
1. With the debit balance at the close 
with the insurance premiums ex- 
of the fiscal period. (Debit Loss 
pired during the period. (Credit 
and Gain.) 
Prepaid Insurance.) 
Loss from bad accounts (N6). 
Debit: 
Credit: 
1 . With the amounts reserved out of the 
1. With the debit balance at the close 
profits to cover the probable loss 
of the fiscal period. (Debit Loss 
from bad debts. (Credit Reserve 
and Gain.) 
for Bad Debts.) 
Miscellaneous (N7). 
Debit: 
Credit: 
1. With expenses which are not charge- 
1. With the debit balance at the close 
able to any of the foregoing ac- 
of the fiscal period. (Debit Loss 
counts. 
and Gain.) 
