BOOKKEEPING FOR GRAIN ELEVATORS. 
17 
C. FIXED ASSETS. 
Land (Cl). 
Debit: 
Credit: 
1. With the cost of the land owned as 
1. With the cost of any land sold. 
shown by the Balance Sheet at 
the time of opening the books. 
2. With any subsequent purchases of 
land. 
3. With the cost of any permanent im- 
provement, such as sewers, water 
mains, etc. 
If any land is sold at a price in excess of its cost, such excess should be credited 
to surplus. 
In cases where a company installs a switch, the expenditure should be debited to 
an account appropriately captioned and its value depreciated annually in the same 
manner as the buildings. 
Buildings (C2). 
Debit: 
Credit: 
1. With the cost of the buildings as 
1. With the total cost of any buildings 
shown by the Balance Sheet at 
sold or destroyed. 
the time of opening the books. 
2. With the total cost of parts of build- 
2. With the cost of all new construc- 
ings destroyed or replaced. 
tions. 
(Debit Reserve for Depreciation 
3. With the cost of all additions or 
on Buildings.) 
alterations when such cost in- 
creases the utility. 
4. With the cost of replacements. 
See discussion of extraordinary losses page 28. 
See also Reserve for Depreciation on Buildings, 
Machinery and Equipment (CS). 
Debit: 
Credit: 
1. With the original cost of the machin- 
1. With the cost value of machinery 
ery and equipment as shown by 
or equipment sold, discarded, or 
the Balance Sheet at the time of 
destroyed, at which time debit 
opening the books. 
Cash account for the amount real- 
2. With the cost of subsequent pur- 
ized, if any, and debit Reserve 
chases of machinery and equip- 
for Depreciation on Machinery 
ment, including freight or express 
and Equipment for the difference 
on same, installation, etc. 
between the cost value and the 
3. With the cost of alterations and 
amount realized. 
improvements increasing the 
efficiency of the capacity of the 
plant. 
The balance of this account represents the cost of machinery and equipment in use. 
See discussion of extraordinary losses, page 28. 
134432°— 19 3 
