34 BULLETIN 985, U. S. DEPARTMENT OF AGRICULTURE. 
TaxeEs (04), 
| 
Debit: | Credit: 
1. With the payments ofall taxes(ex- 1. At the beginning of the fiscal pe- 
cept income taxes). riod with the accrued taxes at 
2. With accrued taxes at the close of | - the close of the previous fiscal — 
the fiscal period. (Credit Ac- | period. (Debit Accrued rent 
crued rent and taxes.) | and taxes.) 
| 2. With the debit balance at the end | 
| of the fiscal period. (Debit Loss 
and gain.) 
It should be noted that income taxes must not be charged to this account, but to 
Surplus. 
Loss FrRoM Bap Accounts (05). 
Debit: _ Credit: 
1. With the amounts reserved out of | 1. With the debit balance at the close 
the profits to cover the probable | of the fiscal period. (Debit Loss 
loss from bad debts. (Credit Re- and gain.) 
serve for bad debits.) 
MISCELLANEOUS EXPENSE (06). 
Debit: |. Credit: 
1. With the cost of any items of ex- 1. With the debit balance at the close 
pense not chargeable to any | of the fiscal year. (Debit Loss 
other account. and gain.) 
To this account should be charged such expenses as donations to charitable organi- 
zations or any other expense that can not properly be charged to any oi the other 
accounts. 
P. TRADING ACCOUNTS. 
SEED-COTTON PURCHASES (P1). 
Debit: | Credit: 
1. With the value oi purchased seed | 1. With the value of the inventory of 
cotton on hand at the beginning | purchased seed cotton on hand at 
of the fiscal period. (Credit In. | the end oi the fiscal period., 
ventory, account No. AD.) me Inventory, account No. 
2. With the cost of any seed cotton | ) 
purchased. [eee With Ae debit balance at the close 
of the fiscal peried. (Debit Loss 
and gain.) 
To the cost of purchasing seed cotton must be added the cost of ginning and baling 
it, in order to learn its total cost. 
GINNING PURCHASED SEED COTTON (P14). 
Debit: Credit: 
1. With the cost of ginning purchased 1. With the debit balance at the end 
seed cotton. (Credit Loss and oi the fiscal period. (Debit Loss 
gain, account No. 13.) and gain.) 
2. With the cost of bagging and ties 
used in baling purchased seed 
cotton. (Credit Bagging and ties 
sales.) 
