24 BULLETIN 811, U. S. DEPARTMENT OF AGRICULTURE. 
Surplus (1-2). 
Debit: 
Credit: 
1. 
With the amount of dividends 
1. 
With the amount of surplus at the 
declared by the board of directors. 
time of opening the books as shown 
(Credit Dividend account.) 
by the balance sheet. 
2. 
With any net loss at the end of a 
2. 
With the amount of net gain at the 
fiscal period as shown by a debit 
end of each fiscal period, as shown 
balance of the Loss and Gain 
bv a credit balance of the Loss 
account. (Credit Loss and Gain.) 
and Gain account. (Debit" Loss 
3. 
With amounts reserved for Sinking 
and Gain.) 
Fund. (Credit Reserve for Sink- 
3. 
With amounts of sinking fund expen- 
ing Fund.) 
ditures when such fund is dis- 
4. 
With adjustments decreasing the 
bursed. (Debit Reserve for Sink- 
profits of a previous fiscal period. 1 
ing Fund.) 
4. 
With adjustments increasing the 
profits of a previous period. 1 
In case the liabilities and outstanding capital stock exceed the total assets at the 
time of opening the books, the entry to this account will be a debit and will indicate 
a deficit. The same will be true if, at any future time, this account has a debit balauce. 
Loss and Gain (1-3). 
Debit: 
Credit: 
1. At the end of the fiscal year with 
1. With the credit balances of all in- 
any debit balances of income 
come accounts at the close of the 
accounts (showing losses) and with 
fiscal period. 2 (Debit Income 
the debit balances of the expense 
Accounts.) 
accounts. 3 (At this time credit 
2. At the beginning of the fiscal period 
such accounts.) 
with the storage liability at the 
2. With the storage liability at the end 
close of the previous fiscal period. 
of the fiscal period. (Credit Stor- 
(Debit Storage Liability.) 
age Liability.) 
At the end of the fiscal period, if the credits to this account exceed the debits, a 
net gain is shown; but if the debits exceed the credits, a net loss has resulted from the 
year's operations. This account will be closed by a debit or credit, as the case may be, 
to Surplus account. 
i Errors and omissions are often found which apply to a previous fiscal period, 
items will be made through the Surplus account as indicated. 
2 See accounts under Income Accounts in the classification. 
3 See accounts under Expense Accounts in the classification. 
Adjustment of such 
