1 Mar., 1899.] QUEENSLAND AGRICULTURAL JOURNAL. 177 
PAYMENTS. 
ANALYSIS OF PAYMENTS, 
To Whom 
Date. and Amount Paid. | TO ———— | Household 
Particulars. Dairv and G Expenses. 
I ary a ‘ eneral 
Crops Poultry. Implements. Re pensoee 
The above headings are not, of course arbitrary, but are suggestive merely, 
for the headings can be arranged to suit local cireumstances.. A cash account 
compiled upon the basis of the above specimen will show at a glance what are 
the receipts or expenditure on acconnt of the different departments of farming 
life. With regard to the column for implements under the heading of pay- 
ments, only the cost of new implements should be charged thereto; repairs and 
renewals would naturally come,under the head of general expenses ; indeed, 
what cannot be charged to household expenses or to specifie branches of the 
farm comes under that heading. ‘The analysis of the cash account and the 
profit and loss account, which is based upon it, will, it is thought, be more 
valuabie if the wages of the hands be divided over the different columns. ‘To 
facilitate the division of labour and to prevent unnecessary entries in the cash 
account, a separate account of labour should be kept, and only the totals for 
each week or period fixed upon should be entered in the cash account. The 
totals of the pages of the cash account should be continuous, the correctness 
of each page being tested by the cross cast of the analysis columns, so that 
when the time arrives to strike a balance the total receipts and payments 
under each heading will be given. These totals form a very reliable and 
important basis for the profit and loss account, and are arrived at without the 
trouble and delay of ledger posting that is so necessary in commercial life. 
The cash account, of course, only refers to monetary transactions, but there 
are many other things on a farm which require adjusting before a balance can 
be properly arrived at. For instance, the transfer of the value of live stock 
from one branch or department of a farm to another, debts to and payments 
that have been made in kind, but not by money—manure from the yards to the 
paddocks, &c., &c. Transactions of such nature may be set right by a note 
being taken at the time in a pocketbook or daybook of their market value, 
and at the proper time credited and debited in the cash account. Jor an 
example, take the manure from the yards. ‘This should be credited to the live 
stock, and debited to the crops or rather to the paddock it is to benefit. The 
reason for this is that in reality the manure has been sold from part of the ~ 
farm and brought by another part, just as much as if it had been purchased 
from an outsider. 
In the same way should all the produce consumed be dealt with. House- 
hold consumption from farm produce likewise comes under the same category. 
The benefits to be derived from such a system ean be summarised thus— 
(1.) Though the amounts involved in accounting the transactions increase both 
sides, the general balance of receipts and payments and of profit and loss is 
not affected, but the results of each department are corrected thereby. (2.) 
The total amount owing to and by the farmer can be best shown on the face 
of the profit and loss account as detailed in the specimen form. In the 
specimen profit and loss account it is assumed that a valuation is made at the 
end of each year, the amount being credited to the account of the expiring 
year, and brought forward to the debit of the coming one. If it be desired to 
compile-a “capital account” each year, the household expenses should not 
appear in the profit and loss account, for, properly speaking, they are not part 
