\ 
ee, 
ee Sgt +; 
LIVE-STOCK SHIPPING ASSOCIATIONS. 21 
NET WORTH. 
Debit: 
(1) With the excess of. liabilities over 
ane at the time of opening the 
oO. 
(2) With the par value of shares of stock 
retired, or memberships redeemed 
Beer such memberships are redeem- 
1 
(3) With the net loss transferred from 
the loss and gain account at pe end 
of the fiscal year. 
Credit : 
(1) With the par value of shares of stock 
outstanding at the time of opening 
the books. 
(2) With the excess of assets over liabili- 
ne at the time of opening the 
00 
(3) With the par value of additional 
shares of stock sold. 
(4) With the membership fees paid in, in 
ease of associations incorporated 
under laws which hold memberships 
redeemable. 
(5) With net profits transferred from the 
loss and gain account at the end of 
the year. 
It seldom occurs that the total resources of a concern exactly equal 
the total liabilities. 
If the resources at the time of opening the books 
exceed the liabilities, a free surplus exists. 
This balance represents 
the proprietors’ (members’ or stockholders’) equity or interest in the 
business and will be entered on the credit side of the net worth ac- 
count. Sales of shares of capital stock, if any, will also be entered in 
this column. However, if the liabilities or debts exceed the resources, 
the balance will represent the amount by which the association is 
unable to meet its obligations 100 cents on the dollar. The balance 
in this case will be entered in the debit column. At the end of the 
fiscal year the stockholders’ or members’ equity will be increased or 
decreased by the amount of the net gain or net loss shown by the 
loss and gain account. 
In addition to the above, the following accounts are frequently 
needed. 
FEDERATION DUES. 
Debit: 
(1) With payments of current dues to 
State or district federation on ac- 
coe of membership in such federa- 
ions, 
Associations which are members of a State or district federation 
of shipping associations, whose membership fees are collected out 
of the proceeds of shipments, will need a federation dues account. 
Any excess of the total collected over the amount paid out will repre- 
sent the amount due the federation at any given time. 
Credit : 
(1) With deductions from proceeds of the 
ile of live stock for federation 
ues, 
YARD AND OFFICE EQUIPMENT. 
Debit: 
(1) With the value of equiptment at the 
time of opening the books. 
(2) With the purchase price of additional 
equipemnt bought. 
(8) With the freight and installation costs 
of equipment. 
Space is provided for two additional accounts. 
Credit : 
(1) With cost value of property sold or 
otherwise disposed of. 
(2) With estimated depreciation at the 
end of the fiscal year. 
Associations which 
have invested money in yard and office equipment should use one 
pair of these columns for keeping track of such property. 
INDEBTEDNESS. 
Debit: 
(1) With payments made in settlement of 
outstanding obligations. 
Credit : 
(1) With the amount of outstanding obli- 
petions at the time of opening the 
(2) With. Sabeeabht obligations incurred 
because of money borrowed or sup- 
plies purchased on account. 
