Farm Book-keeping. 
61 
the balance of the Establishment Account over all the other 
accounts in proportion to their turnover — going on the 
assumption that the account with the largest turnover has 
probably benefited to the greatest extent by the establishment 
expenditure. This is, of course, only an approximation and 
to reduce any error to a minimum the account must be kept 
as small as possible ; that is to say, nothing must be charged 
to it that can by any means be placed direct against any of the 
other accounts. 
It may not be out of place to refer to one or two criticisms 
which have been brought against this system of farm book- 
keeping, and perhaps the writer may first of all emphasise the 
point that this article is merely suggestive in its intention. So 
long as the principle of “ costs ” and “ net profits ” is adhered 
to, the accounts can be developed in a variety of ways other 
than that adopted here by way of illustration. It has 
been objected that there are so many estimations of 
values as to make the results shown by the various accounts 
quite unreliable. If this were so the system would stand 
condemned, for the results would not justify the labour 
entailed ; but there is no reason why the estimations 
and apportionments should be so far wrong. The only 
point where a serious error might be introduced is in the 
apportionment of rent, but this problem has to be faced and 
it may be solved with reasonable accuracy. With regard to 
the prices at which live stock is transferred from one account 
to another, the farmer is so constantly attending markets, fairs, 
&c., that he should have no difficulty in assigning a fair value 
to his own stock. 
Objection has also been made against the annual valuation 
on the grounds that market fluctuations might considerably 
affect the values of stock which there is no intention of selling, 
thereby producing fictitious profits or losses. This is a matter 
of opinion. Some people like an annual valuation at current 
market prices because it admits of the true financial position 
on a certain date being shown, but it is by no means an 
absolute necessity in the keeping of these accounts. Thus, 
for breeding flocks and herds which are carried on from year 
to year, a fair average value per head can be adopted and the 
stock carried forward each year on this basis regardless of 
current market prices. The rest of the live stock can be 
carried forward at the close of the year at their cost , as shown 
by their various accounts, and the profit or loss will then only 
appear when subsequently the stock is sold. 
The commonest objection, however, is on the score of 
the work entailed. It is said that no farmer could be 
expected to plunge into such a maze of figures. That a 
