$2 BULLETIN 985, U. S. DEPARTMENT OF AGRICULTURE. 
N. GINNING EXPENSE, OPERATING. 
SALARIES AND LABOR EXPENSE (N1). 
Debit: : | Credit: 
With the amount actually earned for With the debit balance at the close of 
the period by all factory employees the fiscal year. (Debit Loss and 
as shown by the time sheet. (Credit gain.) 
Pay roll account.) 
It will be noticed that this account is not charged with advances to employees not i} 
with the amount paid to employees, but with the amount actually earned during the 
period. All payments, of whatever nature, are charged to Pay roll account. (See 
p. 26.) 
POWER EXPENSE (N2). 
Debit: | Credit: 
1. With the cost of all material of every 1. With the debit balance at the end 
nature used as fuel in producing of the fiscal period. (Debit Loss 
power. and gain.) 
2. With the cost of electricity used for 
- light or power. 
3. With the cost of water used in mak- 
ing steam power. 
All expenditures except for labor and for repairs to boilers, which are made directly 
with the aim of producing power, must be charged to this account. 
REPAIRS (N83). 
Debit: | Credit: 
1. With the cost of repairs and renew- | 1. With the debit balance at the close 
als which are necessary to main- | oi the fiscal period. (Debit Loss 
tain the efficiency of the plant but and gain.) 
which do not add to its original 
value. 
This account takes care of such items as a broken window pane or a new plank in the 
approach. Where an entire piece of equipment is replaced, the old piece should be 
charged to Reserve for depreciation and the new one charged to Machinery and equip- 
ment, Buildings, or Office furniture and equipment, as explained under those accounts. 
DEPRECIATION (N4). 
| 
Debit: | Credit: 
1. With the amounts reserved out of | 1. With the debit balance at the close 
the profits of each fiscal period to | of the fiscal period. (Debit Loss 
cover loss from wear, tear, and | and gain.) 
obsolescence of office furniture 
and equipment, machinery and 
equipment, and buildings. (Credit 
the corresponding reserve ac- 
counts. ) 
