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 COPYRIGHT DEPOSm 
 
Farm Book-keeping 
 
 A PRACTICAL BOOK 
 OF INSTRUCTION 
 WRITTEN PARTICU- 
 LARLY FOR USE ON 
 THE FARM 
 
 By H. GRANT LAMB 
 
 1908 
 
 The Thomas Press 
 New York 
 
^5 
 
 
 LI6RARY of GeN(iRE6S 
 
 SEP 26 ]i*ua 
 <?o pt a. * 
 
 Copyright 1908, by 
 
 H. Grant Lamb. 
 All rights reserved. 
 
INTRODUCTION, 
 
 In getting up this book I have at all times kept 
 foremost in mind that it is intended for farmers and 
 their wives. That the instruction must be clear and 
 simple, and the method such that the results will 
 show the farmer what he wants to know. 
 
 The advantages derived from keeping books are 
 manifold, and no doubt a book of some sort is kept 
 by every careful person, whether a farmer or not. 
 It is one thing, however, to keep a rough memo- 
 randum of expenditures and another to keep a scien- 
 tific record, a record which shows at all times the 
 amount being made, spent, saved. "7:. " 
 
 The Farm Book-Keeper will admirably^ serve 
 the man that wants to do things right. The instruc- 
 tion is so arranged and so simple that you will have 
 no difficulty, and can with confidence sit down and 
 record immediately by Double Entry Book-keeping, 
 all cash received and paid out, all produce grown 
 and sold, and bring the business of a month or of a 
 year to the final point where the exact profit or loss 
 is shown. While the method is simple, the results 
 are the same as those obtained by the largest mer- 
 cantile establishments. 
 
 In endeavoring to make Double Entry Book- 
 keeping perfectly clear and simple, it has been found 
 
iv Introduction. 
 
 desirable to eliminate practically all side issues and 
 elaborate definitions, and to keep closely to the main 
 point of teaching how to keep one's own books. 
 Most text books are so overburdened with side issues 
 that it is next to impossible for anyone not an expert 
 to understand them or to find the real kernel. 
 
 With the foregoing I commend this little book to 
 your favor, feeling confident it will be found all 
 that is claimed, and that the hour or two a week you 
 may spend at Double Entry Book-keeping will be 
 filled with a just measure of profit and pleasure. 
 
 Matawan, N. J. H. G. L. 
 
CONTENTS. 
 
 J f . Page. 
 
 Introduction j-j 
 
 Contents y 
 
 Foreword of Instruction vii 
 
 Chapter I. 
 Inventory of Resources and Liabilities 1 
 
 Chapter II. 
 Opening the Journal 3 
 
 Chapter III. 
 Opening the Ledger 4 
 
 Chapter IV. 
 Posting 5 
 
 Chapter V. 
 Explanation of the Ledger Accounts 9 
 
 Chapter VI. 
 Daily Transactions 1 5 
 
 Chapter VII. 
 The Growing A/C | 7 
 
 Chapter VIII. 
 Monthly Closing 21 
 
 V. 
 
vi Contents. 
 
 Chapter IX. 
 
 Inventory Diagram 28 
 
 Journal ** 30 
 
 Ledger Index ** 38 
 
 Ledger - ** 39 
 
 Trial Balance ** 48 
 
 Chapter X. 
 After the First Month 49 
 
 Chapter XI. 
 Definitions and Meanings 51 
 
 Chapter XII. 
 Index 60 
 
FOREWORD OF INSTRUCTION, 
 
 You will note that the detailed instructions in this 
 book are all in one part, while the illustrating Dia- 
 grams are grouped together in another part. The 
 object of keeping all the Diagrams together is to 
 enable an entry or transaction being traced, without 
 looking in various parts of the book. 
 
 Look over and study the Diagrams carefully. 
 The great majority of people learn much more 
 readily from a practical illustration than from written 
 directions, no matter how clear the directions n)ay be. 
 Before starting your books it would be well to read 
 this book through, following the written directions by 
 reference to the Diagrams. This will familiarize 
 you with the method and the objects to be attained. 
 Once you start at your own books, however, follow 
 the instructions in exact sequence and finish each 
 process before proceeding to the next. 
 
 The opening of the books will be found the only 
 laborious part. Be very careful in taking the Inven- 
 tory to get it correct, or it may later on cause diffi- 
 culties. 
 
 During the first month or so, refer to the specimen 
 entries in the Diagrams when you are entering your 
 daily transactions. By this means you will avoid 
 getting entries down the wrong way, and will also 
 
viii Foreword of Instruction. 
 
 get imbued much more quickly with the principles^ 
 of Double Entry Book-keeping. 
 
 Keep your books in a neat condition, and always 
 make plain and legible figures; it saves time and 
 takes no more effort. 
 
 Remember these CARDINAL RuLES: 
 
 I. The same amount or total amount must al- 
 ways be placed on the Debit and Credit 
 sides. 
 
 II. Debit that which CoSTS, that which RE- 
 CEIVES, that which You Pay. 
 
 III. Credit that which GiVES, that which PRO- 
 
 DUCES, that which PaYS You. 
 
 IV. Post from the Debit side of the Journal to the 
 
 Debit side of the Ledger, and from the 
 Credit side of the Journal to the Credit 
 side of the Ledger. 
 
 V. Make all Journal entries and postings in black 
 ink; and all Ledger transfer entries in 
 red ink. 
 
 Be systematic, enter the daily transactions in the 
 Journal promptly, post to the Ledger regularly and 
 close the books at the end of the month punctually. 
 Have the monthly Trial Balance balance, and start 
 out each new month with the preceding month's busi- 
 ness closed in apple pie order. 
 
CHAPTER I. 
 
 INVENTORY OF RESOURCES AND 
 LIABILITIES. 
 
 ( I ) In starting a set of double entry books the 
 first thing is to find out what you own and what you 
 owe, or in other words, your Resources and Lia- 
 bihties. 
 
 (2) To obtain this information accurately, 
 make a complete list or inventory of what you own, 
 excepting household furniture and personal effects. 
 The inventory will consist of all or some of the items 
 shown under Resources in the Inventory Diagram 
 (95) . If you have any classes of property not men- 
 tioned in this diagram, put them down. Should you 
 have more than one bank account enter them sep- 
 arately. 
 
 (3) Opposite each item mark its value, or as 
 near as you can estimate it, and after the manner 
 shown in the diagram (95), group the values of 
 those items coming under a general classification. 
 That is, Oats, Corn and other produce should be 
 added together, and the various items of Live Stock 
 should be added together. 
 
2 Inventory of Resources and Liabilities. 
 
 (4) Then add all the items and the total will 
 he your Resources. 
 
 (5) After you have made a list of, and totalled 
 the amount of your Resources, make a similar list 
 of what you owe, called your Liabilities. This will 
 consist of all or some of the items shown under Lia- 
 bilities in the Inventory Diagram (95). Should you 
 have any classes of liabilities not shown there, put 
 them down. 
 
 (6) Mark the amount opposite each item and 
 total as shown in the diagram. 
 
 (7) Deduct the Liabilities from the Resources, 
 and the difference will represent your Net Worth. 
 
 (8) Copy the lists of Resources and Liabilities 
 on the last few pages of the Journal. By having this 
 information right in the Journal it is always at hand. 
 You can tell from the number of lines it will require 
 in the Journal just how many pages to use. 
 
CHAPTER II. 
 
 OPENING THE JOURNAL. 
 
 (9) Turn to the first page in the Journal and 
 on the top line write the date you start keeping the 
 books. 
 
 ( 1 0) Then write the list of your Resources by 
 classes only, and on the left side or Debit column 
 enter the amounts. See Journal Diagram (96) . 
 
 (11) Now write the list of Liabilities items in 
 the same manner, entering the amounts on the right 
 side or Credit column, as shown in the Journal Dia- 
 gram. 
 
 (12) Lastly enter the Net Worth, under the 
 title of Owner's Capital A/C, on the Credit side, 
 being careful after making all the entries that the 
 totals of the Debit side and of the Credit side are 
 the same. 
 
 (13) It is an absolute rule with the Journal that 
 the two sides must always have the same totals. 
 When an amount is put on one side of the Journal 
 an equal amount must be entered on the other side 
 or the books will not balance. 
 
CHAPTER III. 
 
 OPENING THE LEDGER. 
 
 (14) The Ledger is a book to which is briefly 
 transferred or Posted, the items first written in the 
 Journal. In the Journal we write continuously, but 
 the Ledger is divided into Accounts. 
 
 (15) The index in front of the Ledger is to 
 enable the convenient locating of any account in the 
 Ledger. 
 
 (16) You will now open the Ledger by writing 
 in the names of the principal accounts. Write only 
 the names of the accounts at this time. 
 
 (17) On page 1 of the Ledger write : Owner's 
 Capital A/C. 
 
 See the Ledger Diagram (98) for this and the 
 following title entries. 
 
 (18) On page 2 write: Cash, 
 
 (19) On page I 7 write : Bank A/C. 
 
 (20) On page 27 write: Farm Expense. 
 (21 ) On page 37 write: House Expense. 
 
 (22) On page 47 write: Family Expense. 
 
 (23) On page 57 write: Growing A/C. 
 
Opening the Ledger. 5 
 
 (24) On page 61 write: Produce. 
 
 (25) On page 66 write: Live StocI^. 
 
 (26) On page 69 write: Butter and Eggs. 
 
 This account should only be opened if you 
 ^ell butter and eggs. 
 
 (27) On page 71 write: Interest and Divi- 
 dends. 
 
 (28) On page 72 write: Taxes and Insurance. 
 
 (29) On page 73 write: Farm Property. 
 
 (30) On page 74 write : Implements. 
 
 (3 1 ) On page 75 write : Loss and Gain. 
 
 (32) Other acocunts may be opened whenever 
 necessary, but the ones given here are needed for 
 nearly all sets of farm books. 
 
 (33) The reason several pages are given to 
 some accounts and only one to others, is because some 
 accounts, like Cash, will be used constantly while 
 others will be used very little. In opening a new 
 account always estimate beforehand the number of 
 pages it will probably require. 
 
 (34) Now index each account under its initial 
 letter, as: F — Farm Expense .... 27 
 
 Family Expense ... 47 
 Farm Property^ .... 73 
 Index all new accounts at the time of opening 
 them. See Ledger Index Diagram (97). 
 
CHAPTER IV. 
 
 POSTING. 
 
 (35) With the names of the more important 
 accounts written in the Ledger and indexed, the next 
 procedure is to Post from the Journal to the Ledger. 
 
 (36) Posting is the transferring of entries from 
 the Journal to the Ledger. It is usual when opening 
 a new account to make a posting to it at once, but 
 owing to the number of new accounts incident to 
 opening a new set of books, we have written the 
 names of several accounts first and will now post to 
 them. 
 
 (37) Turning to the Journal (see 96), we find 
 the first item is "Cash, $32.47," on the Debit side. 
 
 Note. — On your own Journal the amount will he 
 different. You must of course hear in mind that the 
 diagrams in this hool^ are onl'^ intended for purposes 
 of illustration, and that it is the real entries and 
 amounts in your own hooJ^s that are to he posted, etc. 
 
 (38) Looking in the Ledger Index you will find 
 Cash is on page 2. Mark this page number in the 
 small column in the Journal, just before and on the 
 same line with Cash. See the way it is done in the 
 
Posting. 7 
 
 Journal Diagram (96) and then mark the Ledger 
 page number before all the accounts, as shown. 
 
 (39) Now turn to page 2, in the Ledger, and 
 as shown in the Ledger Diagram (98) ; post this 
 item on the Debit side of Cash A/C. : 
 
 JP 
 Oct. I — Sundries i 32.47 
 
 Place a small V in the Journal check column to 
 show the item has been posted. 
 
 Sundries is a word used in book-keeping to in- 
 dicate that several accounts are involved. 
 
 Note. — The column marked JP is for the Jour- 
 nal page number from rvhich the entry is posted. 
 
 (40) Post the Bank A/C entry in the same 
 way and as shown in the Ledger Diagram. Always 
 remember to place the V in the check column imme- 
 diately after posting. 
 
 (41 ) After posting the other items on the Debit ' 
 side you will come to STOCKS AND BoNDS. No 
 Ledger account having been opened under this title 
 it is necessary to open one. Therefore, on page 76 
 write: Stocks and Bonds. 
 
 Index this account. 
 
 Mark the Ledger page number in the Journal. 
 Post the items from the Journal to the Ledger as 
 you did the others. 
 
 Note. — This is the method of opening all new 
 accounts in the Ledger. Should there he new ac- 
 
8 Posting. 
 
 counts to open in your own books, do it this wa^y be- 
 ing verp careful to alvpays enter the account in the 
 Index. 
 
 (42) Next post the items from the Credit side 
 of the Journal to the Credit side of the Ledger. 
 
 (43) Always post from the Debit side of the 
 Journal to the Debit side of the Ledger, and from 
 the Credit side of the Journal to the Credit side of 
 the Ledger. The total amount posted on the Debit 
 side must always be the same as on the Credit side. 
 
 (44) Two Ledger accounts are never opened 
 for the same thing. There can be only one Cash 
 A/C, and the same with the other accounts. For 
 exceptions to this rule see (76). 
 
CHAPTER V. 
 
 EXPLANATION OF THE LEDGER 
 ACCOUNTS. 
 
 (45) The object of dividing the Ledger into 
 accounts is to enable the gathering together of all 
 items of a class, and segregating them from the 
 others. Thus in Cash A/C is gathered all cash 
 items; in HousE EXPENSE A/C all items relating 
 to expenditures for the house. 
 
 Owner's Capital A/C. 
 
 (46) This account shows the Net Worth of 
 the owner or of the farm. No entries should be 
 made to it after the Opening Entr^ excepting trans- 
 fers from the Loss and Gain A/C. The excess 
 balance on the Credit side shows the Net Worth. 
 
 Cash A/C. 
 
 (47) To this account are posted all cash items 
 received or expended. The excess balance on the 
 Debit side shows the amount of cash on hand. 
 
 Bank A/C. 
 
 (48) To this account are posted all deposits 
 and withdrawals by cheque or otherwise. The ex- 
 
1 Explanation of Ledger Accounts. 
 
 cess balance on the Debit side shows the amount on 
 deposit. 
 
 Farm Expense A/C. 
 
 (49) To this account are posted all expenses of 
 the farm, such as labor, fertilizer, grinding, repairs 
 and the like. The excess balance on the Debit side 
 shows the amount expended. This account is closed 
 into Loss AND Gain A/C monthly. 
 
 House Expense A/C. 
 
 (50) To this account are posted all house ex- 
 penses like food, fuel, light, telephone, furniture, etc. 
 The excess balance on the Debit side shows the 
 amount expended. This account is closed into Loss 
 AND Gain A/C monthly. 
 
 Family Expense A/C. 
 
 (51 ) To this account are posted all family ex- 
 penses, like clothes, church, newspapers, amusements 
 and all expenditures of a personal or family nature. 
 The excess balance on the Debit side shows the 
 amount expended. This account is closed into Loss 
 AND Gain A/C monthly. 
 
 Growing A/C. 
 
 (52) To this account are posted all items affect- 
 ing the harvesting of produce, and the growth of 
 
Explanation of Ledger Accounts. 1 1 
 
 farm animals. The excess balance on the Credit 
 side shows profit, while an excess balance on the 
 Debit side shows a loss. This account is of such 
 importance that Chapter VII has been entirely de- 
 voted to it. This account is closed into LpSS AND 
 Gain A/C monthly. 
 
 Produce A/C. 
 
 (53) This account shows the value of the grain, 
 vegetables and the like being held for future sale. It 
 should be Debited when produce is stored after be- 
 ing gathered, and not sold at once. When produce 
 which has been held for future sale is sold this ac- 
 count should be Credited. The excess balance on 
 the Debit side shows the value of the produce on 
 hand. 
 
 Live Stock A/C. 
 
 (54) This account shows the value of the live 
 stock grown and still on hand. It should be Debited 
 when any live stock has become ready for sale, and 
 is not sold at once. When live stock which is being 
 held for sale is sold this account should be Credited. 
 The excess balance on the Debit side shows the 
 value of the live stock on hand. 
 
 Butter and Eggs A/C. 
 
 (55) To this account are posted all items re- 
 lating to the sale of butter and eggs. The excess 
 
1 2 Explanation of Ledger Accounts. 
 
 balance on the Credit side shows the gross profit. 
 This account is closed into Loss AND Gain A/C 
 monthly. 
 
 Interest and Dividend A/C. 
 
 (56) To this account are posted all payments 
 and receipts of these items. An excess balance on 
 the Credit side shows a profit; on the Debit side it 
 shows a loss. This account is closed into Loss AND 
 Gain A/C monthly. 
 
 Taxes and Insurance A/C. 
 
 (57) To this account are posted all payments 
 for these items. The excess balance on the Debit 
 side shows the amount paid out. This account is 
 closed into Loss and Gain A/C monthly. 
 
 Farm Property A/C. 
 
 (58) To this account a first entry is made show- 
 ing the Inventory value. The only other entries 
 would be in the event some of the property is sold, 
 deteriorates, or more is purchased. The excess bal- 
 ance on the Debit side shows the value. 
 
 Loss AND Gain A/C. 
 
 (59) No postings are made to this account, but 
 the balances of those accounts showing losses, ex- 
 penses or gains are transferred to it. After these 
 transfers are made the Loss AND Gain A/C shows 
 
Explanation of Ledger Accounts. 13 
 
 the profit or loss for the month. A balance on the 
 Debit side indicates a loss, and on the Credit side 
 a gain. This account is closed into OwNER*S CAP- 
 ITAL A/C monthly. 
 
 Implements A/C. 
 
 (60) To this account a first entry is made show- 
 ing the Inventory value of all tools and machinery 
 on hand. It is Debited when these articles are pur- 
 chased, and Credited when they wear out. The 
 excess balance on the Debit side shows the value. 
 
 Stocks and Bonds A/C. 
 
 (61 ) A first entry is made showing the Inven- 
 tory value. It is Debited when stocks or bonds are 
 purchased, and Credited when they are sold. The 
 excess balance on the Debit side shows the value. 
 
 Mortgage Payable A/C. 
 Notes Payable A/C. 
 
 (62) A first entry is made to each of these ac- 
 counts showing the amounts, if any, of the mortgages 
 or notes we must pay. The accounts are Credited 
 when new notes or mortgages are given, and Debited 
 when they are paid. The excess balance on the 
 Credit side shows the amount to be paid. Mortgages 
 and Notes Receivable are the reverse of Payable. 
 
1 4 Explanation of Ledger Accounts. 
 
 Personal Accounts. 
 (63) Accounts like James Trevor and Gar- 
 wood Milling Co. are called Personal Accounts. 
 They are Debited with whatever we pay them, and 
 are Credited with what they pay us. An excess bal- 
 ance on the Debit side shows the amount they owe 
 us, and on the Credit side the amount we owe them. 
 
CHAPTER VI. 
 
 DAILY TRANSACTIONS. 
 
 (64) The most onerous part of the work is now 
 over with the books properly opened. The next step 
 is to record what has been purchased, sold, paid out, 
 grown and the like, or in other words to keep track 
 of what is being done. 
 
 (65) In the Journal Diagram (96) after the 
 opening entries you will find : 
 
 Paid cash for house suppUes. 
 
 House Expense Dr. 8.20 
 
 Cash Cr. 8.20 
 
 Beginning with this one is a series of specimen en- 
 tries intended to cover practically every ordinary 
 transaction on a farm. By reference to this diagram 
 you should have no difficulty in making a simple 
 entry of a purchase for the house, or even the more 
 difficult ones covering the payment of Notes, the 
 buying and selling of goods on credit, etc. 
 
 (66) Following the practice of the best business 
 houses, every useless form has been eliminated and 
 the entries put on a common sense basis, making them 
 clear and understandable. 
 
 IS 
 
16 Daily Transactions. 
 
 (67) The proper way is to write down every 
 transaction as it occurs. If you pay out money, 
 mark it down in the Journal at once. First state 
 what it was paid out for, and then to which account 
 it should be charged. If for a new hat it is F amily 
 Expense; if for food, it is House Expense. Then 
 mark down the account that should be credited. If 
 you paid cash, credit Cash A/C; if bought on 
 credit, credit the person or concern trusting you. 
 
 (68) Once each week is generally a convenient 
 and suitable time to post from the Journal to the 
 Ledger. Regularity is the one great point, however, 
 and whether you post every day, every week or every 
 two weeks, you should be punctual and do it at the 
 specified time. 
 
 (69) Posting the daily transactions is identical 
 with the other posting, so no further instruction along 
 that line seems necessary. The same rule is followed 
 of transferring each item from the Debit side of the 
 Journal to the Debit side of the Ledger, and from 
 the Credit side of the Journal to the Credit side of 
 the Ledger. By carefully studying the Journal and 
 Ledger Diagrams (96 and 98) you will see the 
 method of daily posting better than can be described 
 in words. 
 
CHAPTER VII. 
 
 THE GROWING ACCOUNT. 
 
 (70) A few remarks about the peculiarities of 
 farm book-keeping might here be of interest. 
 
 (71) The product of a farm groTvs, and the 
 profits must be derived from the growth. A field of 
 wheat or of tomatoes represents an investment, but 
 has no practical, tangible value until the wheat or 
 tomatoes are gathered and ready for sale. Even 
 then it is often impossible to determine their exact 
 value. If the crop is sold at once the value is defi- 
 nitely fixed, but if the wheat is held for future sale 
 we only know what we expect to get for it. Allow- 
 mg for this uncertainty, which is not of great moment, 
 the keepmg of farm books can be made as accurate 
 as the keeping of books for any other business. One 
 great point of difference, however, is that in lines 
 where goods are manufactured, or merely dealt in. 
 It IS comparatively easy to get at the cost of the 
 product. This results in such concerns showing their 
 profit on the manufacture or sale, when the goods 
 are actually disposed of. 
 
 To figure the cost of a growing field would be 
 neither feasible or necessary, and in view of this it 
 
 17 
 
1 8 The Growing Account. 
 
 is found best in keeping farm books to figure the profit 
 at the time of gathering the produce, whether it be 
 sold at once or stored. There can be Httle objection 
 to this method as the product of a farm is usually 
 sold soon after it is gathered. 
 
 (72) Without going further into the differences 
 between keeping books for the farm and for mercan- 
 tile establishments, there are a few more simple points 
 to bear in mind. Products, whether they be grain, 
 fruits, vegetables or live stock, can be disposed of 
 in four different ways: 
 
 (a) Sold for cash. 
 
 (b) Sold on credit. 
 
 (c) Held for future sale. 
 
 (d) Lost through any cause. 
 
 Rules for Keeping the Growing A/C. 
 
 (73 — I) Enter in the Journal each day the 
 amount and value of the crop or crops gathered that 
 day. In the case of wheat and the like, the entry 
 should be made when it is threshed. The entry 
 should be made after this form: 
 
 If sold for cash — 
 
 Gathered 20 bu. potatoes and sold @ 1.50, 
 for cash. 
 
 CASH Dr. 30.00 
 
 GROWING A/C Cr. 30.00 
 
The Growing Account. 19 
 
 If sold on credit — 
 
 Gathered 20 bu. potatoes and sold to James 
 Smith on 30 days time, @ 1.50 
 
 James Smith Dr. 30.00 
 
 Growing A/C Or. 30.00 
 
 If held for future sale — 
 
 Gathered 20 bu. potatoes and put in barn, es- 
 timated @ 1.50. 
 
 PRODUCE Dr. 30.00 
 
 Growing A/C Cr. 30.00 
 
 Note. — Produce A/C represents the produce on 
 hand; see paragraph (33) for a fuller description 
 of this account. 
 
 (74 — II) Enter in the Journal the description 
 and value of any live stock sold or which has reached 
 the point where it is ready for sale. If sold for cash 
 or on credit the same form as in Rule I should be 
 used. 
 
 If held for future sale the entry should be in this 
 form: 
 
 3 calves now ready for sale, estimated @ $25 
 each. 
 
 Live Stock A/C Dr. 75.00 
 
 Growing A/C Cr. 75.00 
 
 Note. — Live Stock A/C represents the live stock 
 on hand; see paragraph (54) for a fuller description 
 of this account. 
 
 (75 — III) Should a cow die, or some produce 
 be destroyed after it had been credited in the Grow- 
 
20 The Growing Account. 
 
 ING A/C, an entry should be made in the Journal 
 after this form : 
 
 I calf carried in Live Stock A/C died, valued 
 
 @ $25. 
 
 Growing A/C, Dr. 25.00 
 
 Live Stock A/C Cr. 25.00 
 
 Note. — As Cro-wing A/C is credited Tphen a 
 profit is made it must be debited when a loss occurs. 
 
 (76) If care and accuracy are used in keeping 
 the Growing A/C it will show at any time just how 
 much has been produced, and how the current month 
 compares with previous years. For the purpose of 
 simplifying the directions only one GROWING A/C 
 has been given, but no doubt a number of farmers 
 would prefer keeping the profits of their live stock 
 separate from the produce; and even the produce 
 items can easily be divided up into GROWING A/C 
 — Wheat, Growing A/C — Corn, etc. When this 
 is done the entries for wheat should be in the GROW- 
 ING A/C — Wheat account, and the corn in the 
 Growing A/C — Corn account. In the east and 
 near the large cities many farmers will find it advis- 
 able to separate their vegetables from the grain and 
 grass crops in this way. 
 
 (77) Crops grown and intended for the feed of 
 stock on the farm should not be entered in the GROW- 
 ING A/C. 
 
CHAPTER VIII. 
 
 MONTHLY CLOSING. 
 
 (78) At the end of every month is a good time 
 to close the books. It is a very simple operation if 
 the rules given here are carefully followed : 
 
 (79 — I) Total the two sides of CasH A/C 
 and the excess balance on the Debit side will show 
 how much should be on hand. If this amount agrees 
 with the cash actually on hand, Cash A/C is cor- 
 rect. Should there be a difference, and you have less 
 cash than is called for in Cash A/C, it would indi- 
 cate some expenditure had been made without get- 
 ting on the books. If the difference is considerable 
 it should not be hard to locate the missing expendi- 
 ture. In the event of your locating it enter in the 
 Journal and post it. Should there still be a small 
 difference, make an entry like this and post it : 
 
 Shortage in cash not accounted for. 
 Family Expense Dr. 1.28 
 
 Cash Cr. 1.28 
 
 Cash A/C and the cash actually on hand should 
 now balance. 
 
 (80 — II) Total the two sides of Bank A/C 
 and the excess on the Debit side will show the amount 
 
22 Monthly Closing. 
 
 on deposit. If this amount agrees with what is ac- 
 tually in the bank. Bank A/C is correct. If not, 
 look over the deposits and withdrawals and find 
 where the error arises. An error in this account can 
 only happen through making a wrong entry or post- 
 ing, through not entering a deposit or withdrawal, or 
 through not entering interest. When the error i£ 
 any is located, correct it. Place any omitted or cor- 
 recting entry in the Journal and post it. 
 
 (81 — III) Look over the produce you have on 
 hand and see if it about agrees with the value shown 
 in the PRODUCE A/C. The excess balance on the 
 Debit side of PRODUCE A/C should be of about 
 the value of the produce held for future sale. If you 
 find there is more, or less actually on hand than the 
 books show, make an entry in the Journal after this 
 manner : 
 
 The value of the grain, etc., ready for sale 
 is about $50 less than shown in the Produce 
 
 A/C. 
 
 Growing A/C Dr. 50.00 
 
 Produce A/C Cr. 50.00 
 
 or- 
 
 The value of the grain, etc., ready for sale is 
 about $50 greater than shown in Produce 
 A/C. 
 
 Produce A/C Dr. 50.00 
 
 Growing A/C Cr. 50.00 
 
Monthly Closing. 23 
 
 Note. — A discrepancy of this kind between the 
 produce on hand and the value as shown in 
 Produce A/C may occur in several ways — 
 
 {h) Carlessness in keeping the Crowing A/C. 
 
 (b) Loss through disease. 
 
 (c) Feeding to farm stock, 
 
 (d) Selling the produce charged to Produce A/C 
 at greater or lesser prices than estimated. 
 
 (82— IV) Now treat the LiVE Stock A/C in 
 the same way. 
 
 Note. — // will be found if the books are care- 
 fully k^pi that adjustment entries of this kind need 
 be made but very rarely. 
 
 (83 — V) After the posting of all entries from 
 the Journal to the Ledger, total the Debit and Credit 
 columns of the Journal to see that they agree in 
 amount. If they do not agree see where the differ- 
 ence arises and correct it. Bear in mind that when- 
 ever an amount is put in the Debit column of the 
 Journal, an exactly equal amount must be put in 
 the Credit column. Should you correct an error in 
 the Journal which would change an amount posted 
 to the Ledger, the correction should also be made in 
 the Ledger. 
 
 (84 — VI) Next take a sheet of paper ruled 
 and headed as shown in the Trial BALANCE DIA- 
 GRAM (99). Starting on the top line of this sheet 
 
24 Monthly Closing. 
 
 next below the heading, write the page number and 
 the name of the first account in the Ledger. On 
 the same line put the total of the Debits, if any, in 
 the Debit column, and the total of the Credits, if 
 any, in the Credit column. Continue this with all 
 accounts in the Ledger. 
 
 Note. — Put the totals in pencil figures, just un- 
 der the last amount in the Ledger accounts, see 
 Ledger Diagram (98). 
 
 (85 — VII) Add the Debit and Credit sides of 
 the Trial Balance sheet separately, and if they total 
 the same the Trial Balance is correct. Should the 
 totals not be the same, some mistake or mistakes have 
 been made. To discover such errors it is best to 
 look systematically as follows: — 
 
 (a) Check the totals of the Trial Balance sheet. 
 
 {b) Go over each Ledger account and see if 
 both sides have been totalled correctly, and the right 
 amount carried to the Trial Balance sheet. 
 
 (c) Check over all postings for the month. If 
 the last previous balance was correct and the totals 
 of the two sides of the Journal give the same 
 amount, any errors must be discovered by this check- 
 ing. At first you may find it necessary to check more 
 than once. 
 
 (86 — VIII) After the Trial Balance has been 
 found correct, turn to HouSE EXPENSE A/C in the 
 Ledger and as shown in the LEDGER DIAGRAM 
 
Monthly Closing. 25 
 
 (98), make an entry in red ink on the Credit side 
 after this form : 
 
 Oct. 31. Loss and Gain. 75 24.52 
 
 The amount will be the difference between the totals 
 of the two sides of the account. Then put down the 
 total of each side, which will be the same, and rule 
 as shown in the diagram. 
 
 (87 — IX) Turn to Loss AND Gain A/C on 
 page 75, and after this form make an entry in red 
 ink on the Debit side, see diagram (98), 
 
 Oct. 31. House Expense 14 24.52 
 
 (88 — X) Treat FarM EXPENSE A/C. 
 
 Family Expense A/C. 
 Growing A/C. 
 
 Interest and Dividends A/C. 
 Taxes and Insurance A/C. 
 Butter and Eggs A/C. 
 
 and any other accounts showing losses or gains in 
 the same manner, excepting as noted in Rule XI. 
 Make all transfer entries in red ink. 
 
 (89 — XI) When an account shows a loss the 
 total of the Debit side will be the greater ; the trans- 
 fer entry will therefore be on the Credit side of the 
 account, and on the Debit side of Loss AND GaiN 
 A/C. When an account shows a gain, the total of 
 the Credit side will be the greater; the transfer en- 
 
26 Monthly Closing. 
 
 try will then be on the Debit side of the account, 
 and on the Credit side of Loss AND Gain A/C. 
 
 (90 — XII) The profits will always show on 
 the Credit side of Loss AND Gain A/C, and the 
 losses on the Debit side. 
 
 (91^ — XIII) The accounts enumerated in 
 Rules VIII, and X, are the only ones in the speci- 
 men set of books which should be transferred to 
 Loss AND Gain A/C. It is not probable you will 
 find it necessary to open any other accounts of this 
 nature, but if so they should be transferred and ruled 
 off each month. Selecting accounts which show a 
 loss or a gain may seem a trifle difficult at first, but 
 it is very simple. You will note that such accounts 
 are ones like HouSE EXPENSE, Taxes, GROWING 
 A/C, etc., but are not accounts like Bank, Cash, 
 or James Trevor, which only show what is owned 
 or owed. We neither lose nor gain when we lend 
 money to John Smith, it is merely a transfer of cash 
 from our pocket or bank to John Smith, and we ex- 
 pect to get it back. When we buy a plow we do not 
 lose anything, for we have merely exchanged cash 
 for something of equal value, and which we still 
 have. When we pay out wages, however, it is a 
 loss, for we have nothing tangible left in place of the 
 cash paid out. 
 
 (92 — XIV) After all the accounts mentioned 
 are transferred to Loss AND Gain A/C, total the 
 
Monthly Closing. 27 
 
 two sides of that account, and on the side havin'g the 
 smaller total make an entry in red ink as shown in 
 the diagram of Loss AND Gain A/C (98) : 
 Oct. 31. Owner's Capital A/C i 132.72 
 Total and rule this account as shown. 
 
 (93 — XV) Should the transfer entry be on the 
 Debit side, make a corresponding entry in red ink on 
 the Credit side of OwNER*S CAPITAL A/C as 
 shown in the diagram (98) : 
 
 Oct 31. Loss and Gain A/C 75 132.72 
 The amount will be the profit for the month. Should 
 the transfer entry be on the Credit side of Loss AND 
 Gain A/C, make the corresponding entry on the 
 Debit side of Owner's Capital A/C. The 
 amount will then be the loss for the month. 
 
 (94) Whenever an amount is placed on one 
 side of the Journal or Ledger, an equal amount 
 must be placed on the other side. This is the great 
 Cardinal Rule of double entry book-keeping, and 
 there are no exceptions to it. 
 
28 
 
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CHAPTER X. 
 
 AFTER THE FIRST MONTH. 
 
 (100) The instructions and method given in 
 the preceding chapters and diagrams are planned so 
 that every month is separate and complete in itself. 
 Yet, while each month is complete, and the books 
 are closed every month, no opening entries of any 
 kind are necessary in beginning the next month. 
 
 (101) In starting the next month, write in the 
 Journal on the top of the next open page : 
 
 Journal, November i, 1907. 
 
 and then continue to record the daily transactions as 
 heretofore. 
 
 (102) Post from the Journal to the Ledger 
 as during the first month. For convenience start the 
 entries on both sides on the same line of the Ledger, 
 as shown in the diagram of Cash A/C (98). 
 
 (103) In taking off the Trial Balance at the 
 end of the second and succeeding months, take only 
 the figures below the ruled lines. This refers espe- 
 cially to accounts like HoUSE EXPENSE, which 
 have been closed into Loss AND Gain A/C. Total 
 the figures below the ruled lines, in pencil as before. 
 
 49 
 
50 After the First Month. 
 
 On the accounts not ruled off, add the current 
 month's entries to the penciled total under the pre- 
 ceding month, and pencil in the combined total as 
 before. These penciled totals are then carried to the 
 Trial Balance. 
 
 ( 1 04) After the Trial Balance has been proved 
 correct, transfer the loss and gain balances to Loss 
 AND Gain A/C as before, closing and ruling the 
 accounts transferred. Then finish up by closing the 
 Loss AND Gain A/C into the Owner's Capi- 
 tal A/C. 
 
 (105) Every month is complete in itself and 
 the work continues in the same manner from month 
 to month. This constant repetition will soon famil- 
 iarize you with all the details of book-keeping, and 
 those points which at first may seem obscure or un- 
 necessary will be readily understood. 
 
CHAPTER XI. 
 
 DEFINITIONS AND MEANINGS. 
 
 These definitions are only intended to cover the 
 meanings of the words or expressions, as they are 
 used in book-keeping, and more particularly in this 
 book. 
 
 (106) Account, Ledger. — The Ledger is 
 divided into sections, each section being called an 
 account. In each account are grouped all items re- 
 lating to that account. Thus, all cash matters are 
 kept in Cash A/C, and all relating to implements 
 in Implements A/C. 
 
 (107) Adjustment Entries. — Entries 
 made in the Journal to correct some previous error 
 or omission. 
 
 (108) Animals, Growth of. — For book- 
 keeping purposes an animal is considered grown, 
 when it has become ready for work or for sale. Be- 
 fore then it is a source of expense rather than of 
 profit. 
 
 (109) Balance. — An account is said to 
 balance when the totals of both sides are the same. 
 
52 Definitions and Meanings. 
 
 A "Debit Balance," means there is an excess 
 amount on the Debit side, and vice versa. 
 
 (110) Balance, Trial. — See Trial Bal- 
 ance. 
 
 (111) Bank Account. — In book-keeping 
 is meant the LEDGER A/C of that name. It also 
 indicates the account kept at one*s bank. 
 
 (112) Bank Balance. — The amount of 
 the bank balance is shown by the excess on the 
 Debit side of Bank A/C. This should exactly 
 tally with the amount actually on deposit. 
 
 (113) Black Ink. — See Ink. 
 
 (114) Book-keeping. — See Double Entry. 
 
 (113) Borrowing. — When a thing is bor- 
 rowed. Debit that which is received, and Credit the 
 lending party. 
 
 (116) Butter and Eggs. — See (55). 
 
 (117) Capital A/C. — Represents the in- 
 vestment; the excess of what is owned over what is 
 owed is the capital of the farm. See (46). 
 
 (118) Cash. — The money actually on hand. 
 
 (119) Cash Balance. — The amount of 
 cash on hand, which should agree with the excess 
 balance on the Debit side of Cash A/C. 
 
Definitions and Meanings. 53 
 
 (120) Check. — Used to show an entry has 
 been posted from the Journal to the Ledger. 
 
 (121) Cheque or Check. — A written 
 order on a bank to pay money on demand. 
 
 (122) Closed. — An account is said to be 
 closed when it balances. See CLOSING THE 
 Books. 
 
 (123) Closing the Books. — An expression 
 used to describe the terminating of the month's bus- 
 iness, preparatory to opening the books for the next 
 month. 
 
 (124) Credit. — We credit that which gives, 
 produces, or pays. 
 
 (123) Credit, Buying on — Means when 
 we have things charged to our account. 
 
 (126) Credit, Selling on — Means when 
 we trust a party to pay later. 
 
 (127) Credit 5ide. — The right hand side of 
 the Journal or Ledger. 
 
 (128) Daily Transactions. — Those ex- 
 penditures, etc., which are recorded in the Journal 
 from day to day. 
 
 (129) Debit. — We debit that which costs, re- 
 ceives, or which we pay. 
 
54 Definitions and Meanings. 
 
 (130) Debit Side. — The left hand side of 
 the Journal or Ledger. 
 
 (131) Deposit. — Money entrusted to a 
 bank. 
 
 (132) Deterioration. — Shrinkage in value 
 of buildings, animals, crops, implements or invest- 
 ments. 
 
 (133) Dividends. — Income from stocks, and 
 from some other forms of investments. 
 
 (134) Double Entry. — Book-keeping is 
 called double entry when every transaction is re- 
 corded by entering equal amounts on the Debit and 
 Credit sides of the Journal, and when at all times 
 and through every process the total amounts are the 
 same on the Debit and Credit sides of the books. 
 
 (135) Entry. — The record, or transfer of 
 the record, of a transaction. 
 
 (136) Excess .Balance. — The excels 
 amount of one side of a Ledger account over the 
 other side. 
 
 (137) Expenditure. — What is paid out. 
 
 (138) Expense. — Those expenditures for 
 other than debts, which after being paid leave noth- 
 ing of inventoriable value. 
 
Definitions and Meanings. 55 
 
 (139) Family Expense. — All expenditures 
 personal to the family, like clothes and amusements. 
 
 (140) Farm Buildings. — All buildings on 
 the farm, including the dwelling house. 
 
 (141) Farm Expense. — All expense relat- 
 ing to the operation or repair of the farm, excepting 
 those expenditures for articles of inventoriable value, 
 like implements. 
 
 (142) Farm Property. — All real estate, 
 buildings and fixtures, but not the movables nor 
 chattels. 
 
 (143) Feed for Stock. — Feed grown and 
 intended to be used for the farm stock. This feed 
 should neither be inventoried, entered in the GROW- 
 ING A/C, nor be carried in the PRODUCE A/C. 
 
 (144) Future Sale. — A sale not consum- 
 mated, nor necessarily arranged, but expected. 
 
 (145) Gain. — The excess balance on the 
 Credit side of Loss AND Gain A/C. 
 
 (146) Growing A/C— See Chapter VII. 
 
 (147) Harvesting. — Gathering the crops. 
 
 (148) Heading. — The title or other descrip- 
 tion placed above the body of the wrtiten matter. 
 
 (149) House Expense. — All expenditures 
 for the table, and of a general nature like heat and 
 light. 
 
56 Definitions and Meanings. 
 
 (150) Implements. — All kinds of tools and 
 machinery. 
 
 (151) Index. — Used to locate the Ledger 
 accounts. 
 
 (152) Ink. — Red ink is used for making 
 transfer entries in the Ledger and for ruling. Black 
 ink is used for all other purposes. 
 
 (153) Insurance Premiums. — The fee 
 paid for insurance. 
 
 (154) Interest. — The premium for the use 
 of money. 
 
 (155) Inventory. — A tabulated list of Re- 
 sources and Liabilities. 
 
 (156) Investment. — That into which is 
 placed surplus capital or savings, either for greater 
 security or greater profit. All loans, and expendi- 
 tures for articles of inventoriable value are generally 
 speaking, investments. 
 
 (157) JP.— Journal Page. 
 
 (158) Journal. — The book of original 
 entry. 
 
 (159) LP.— Ledger Page. 
 
 (160) Ledger. — A book divided into ac- 
 counts, and to which is posted all entries from the 
 Journal. 
 
Definitions and Meanings. 57 
 
 (161) Ledger Accounts. — See Accounts. 
 
 (162) Ledger Index. — See Index. 
 
 (163) Liabilities. — That which is owed. 
 
 (164) Live Stock. — All animals on the 
 farm, intended either for work or sale. 
 
 (165) Loan. — That which is borrowed or 
 lent. 
 
 (166) Loss. — The excess balance on the 
 Debit side of Loss AND GaIN A/C. 
 
 (167) Loss AND Gain. — The account to 
 which is transferred all losses and gains shown in 
 the other accounts. An excess balance on the Debit 
 side shows a loss, and on the Credit side a profit. 
 
 (168) Monthly .Closing. — See Closing 
 the Books. 
 
 (169) Mortgage Payable. — A mortgage 
 on property, which we must pay. 
 
 (170) Net Worth. — The excess of Re- 
 sources over Liabilities. 
 
 (171) Notes Payable and Receivable. 
 — A Note given, or a Note received by us. 
 
 ( 1 72 ) Owe. — Liabilities. 
 ( 1 73 ) — Own. — Resources. 
 
58 Definitions and Meanings. 
 
 (174) Owner's Capital A/C. — See Capi- 
 tal A/C. 
 
 (175) Pencil. — In book-keeping the pencil 
 is only used for making temporary totals and mem- 
 oranda, and for adding up the Ledger accounts at 
 the end of the month. 
 
 ( 1 76) Personal Effects. — Articles like 
 clothes and jewelry. 
 
 (177) Posting. — The transferring of entries 
 from the Journal to the Ledger. 
 
 (178) Produce. — The product of the farm, 
 see (53). 
 
 (179) Profit.— See Gain. 
 
 (180) Receipts. — Gross income. 
 
 (181) Red Ink.— See Ink. 
 
 (182) Resources. — That which is owned. 
 
 (183) Ruling. — Lines used to separate one 
 set of figures from another set; and to show the end 
 of a transaction or the closing of an account. 
 
 (184) Stock, Live — See Live Stock. 
 
 (185) — Sundries.' A word used in book- 
 keeping to indicate a combination of several ac- 
 counts. 
 
 (186) Total. — The whole sum. 
 
Definitions and Meanings. 59 
 
 (187) Transfer Entry. — An entry -made 
 in red ink, transferring an amount from one Ledger 
 account to another. 
 
 (188) Trial Balance.— A balance taken 
 just before closing the books to make sure the totals 
 of the Debit and Credit sides of the Ledger are 
 the same. 
 
INDEX. 
 
 Paragraph 
 
 Accounts, definition of 1 06 
 
 dividing some 76 
 
 indexing 34 
 
 Ledger, explanation of 43 to 63 
 
 locating 1 3 
 
 opening new 16, 33, 41 
 
 other than principal 32 
 
 personal 63 
 
 principal 1 6 to 32 
 
 showing a loss or gain 88, 89, 91 
 
 Adjustment entries, definition of 107 
 
 After the first month 1 00 to 1 03 
 
 A^musements 31 
 
 Animals, growth of 1 08 
 
 Balance, definition of 1 09 
 
 Balance-Trial, see Trial Balance. 
 
 Bank A/C, explanation of 48, 1 1 1 
 
 openmg of 19 
 
 Bank accounts, if more than one 2 
 
 Bank Balance, adjusting 80 
 
 definition of 112 
 
 errors in 80 
 
 Book-keeping, double entry 114 
 
 60 
 
Index. 61 
 
 Paragraph 
 
 Book-keeping, peculiarities of 70 
 
 Borrowing, definition of 115 
 
 Butter and Eggs A/C, explanation of 55 
 
 opening or Zo 
 
 Calves 74 
 
 Capital A/C, see Owner's Capital A/C. 
 
 Cash Balance, definition of 119 
 
 Cash, definition of 118 
 
 over and short 79 
 
 selling for 72, 73, 74 
 
 Cash A/C, balancing 79 
 
 errors in /V 
 
 explanation of ". . . . .47 
 
 opening of 18 
 
 Check, (V) use of 39, 40, 120 
 
 Cheque or Check, definit'on of 121 
 
 Church 51 
 
 Closed, definition of 1 22 
 
 Closing — Monthly 78 to 94 
 
 Closing the Books, meaning of 1 23 
 
 in later months 1 04 
 
 rules for 78 to 94 
 
 Clothes 51 
 
 Contents V 
 
 Corn 76 
 
 Cost 71 
 
 Credit, buying on 67, 125 
 
62 Index. 
 
 Paragraph 
 
 Credit, definition of 1 24 
 
 '* selling on 12. 13.1 A 
 
 Credit column .11 
 
 Credit side 127 
 
 Crops gathered 73 
 
 Daily Transactions, after first month 101 
 
 definition of 128 
 
 diagram of 96 
 
 entering and posting. .64 to 69 
 
 Debit, definition of 1 29 
 
 Debit column 10 
 
 " side 130 
 
 Definitions 1 06 to 1 88 
 
 Deposit, definition of 131 
 
 Deterioration, meaning of 132 
 
 Diagrams 95 to 99 
 
 for illustration only 37 
 
 Dividend A/C, see Interest and Dividend A/C. 
 
 Dividends, definition of 1 33 
 
 Double Entry book-keeping 134 
 
 Eggs, see Butter and Eggs A/C 
 
 Entries, opening 9 to 13 
 
 in Journal 65, 66, 67, 73 
 
 Entry, definition of 1 35 
 
 Excess Balance, meaning of 136 
 
 Expenditure, meaning of 137 
 
Index. 63 
 
 Paragraph 
 
 Expense, meaning of 1 38 
 
 Expenses, transfer of 59 
 
 of family 51 
 
 of farm 49 
 
 of house 50 
 
 Explanation of Ledger Accounts 45 to 63 
 
 Family expense, definition of 139 
 
 Family Expense A/C, explanation of 51 
 
 openmg or LL 
 
 Farm Buildings, definition of 1 40 
 
 Farm expense, definition of 141 
 
 F arm Expense A/C, explanation of 49 
 
 opening of 20 
 
 Farm Property, definition of 1 42 
 
 Farm Property A/C, explanation of 58 
 
 opening of 29 
 
 Feed for stock 1 43 
 
 Fertilizer 49 
 
 Figuring profit 71 
 
 Food 50,67 
 
 Foreword of Instruction VII 
 
 Fruit 72 
 
 Fuel 50 
 
 Furniture „ 2, 50 
 
 Future Sale, definition of 1 44 
 
 Gain, see Loss and Gain A/C 
 
 definition of 1 45 
 
64 Index. 
 
 Paragraph 
 
 Gain, for month 39 
 
 Gains, transfer of 59 
 
 Grain 53, 72, 76 
 
 Grass 76 
 
 Grinding 49 
 
 Growing A/C, explanation of 52, 70 to 77 
 
 opening or Zj 
 
 rules for 73 to 77 
 
 Growth of animals 1 08 
 
 Harvesting, definition of 147 
 
 of produce 52 
 
 Hat 67 
 
 Heading, meaning of 1 48 
 
 House expense, definition of 1 49 
 
 House Expense A/C, explanation of 50 
 
 opening or Z I 
 
 Implements, definition of 1 50 
 
 Implements A/C, explanation of 60 
 
 opening of 30 
 
 Index Diagram 97 
 
 " for Ledger 15,34,38, 151 
 
 Indexing accounts 34 
 
 Ink, uses of 1 52 
 
 Instruction, Foreword of VII 
 
 Insurance Premiums, definition of 153 
 
 Insurance and Taxes A/C, explanation of. . . .57 
 
Index. 65 
 
 Paragraph 
 
 Insurance and Taxes Taxes A/C, opening of . . .28 
 
 Interest, definition of 1 54 
 
 entering bank 80 
 
 Interest and Dividends A/C, explanation of . . . .56 
 
 opening or Li 
 
 Introduction Ill 
 
 Inventory I to 8 
 
 defintion of 155 
 
 diagram 95 
 
 Investment, definition of 1 56 
 
 Journal, definition of 1 58 
 
 Diagram 96 
 
 entries 65, 66, 67 
 
 opening the 9 to 13 
 
 " rules for the 13, 43, 83, 94 
 
 Labor 49 
 
 Ledger, definition of 1 60 
 
 Diagram 98 
 
 opening the 1 4 to 34 
 
 " rules for the 43, 44, 89, 94 
 
 Ledger Accounts, explanation of. . . .45 to 63, 106 
 
 opening new 1 4 to 34, 4 1 
 
 Ledger Index Diagram 97 
 
 Liabilities 1 to 8 
 
 definition of 1 63 
 
 Diagram 95 
 
 Light 50 
 
66 
 
 Index. 
 
 Paragraph: 
 
 Live Stock, definition of ] 64 
 
 feed for 77,81, 143 
 
 loss of 75 
 
 not sold at once 54 
 
 on hand 54, 74 
 
 value of 54 
 
 when sold 54 
 
 Live Stock A/C, adjusting of 82 
 
 explanation of 54, 74 
 
 opening of 25 
 
 Loan, definiton of 1 65 
 
 Loss, definition of 1 66 
 
 for month 59 
 
 Losses and Gains, transfer of 59 
 
 Loss and Gain A/C, explanation of 59, 1 67 
 
 opening or d\ 
 
 rules for the 86 to 94 
 
 Machinery 60 
 
 Meanings 1 06 to 1 88 
 
 Monthly Closing 78 to 94 
 
 in later months 1 04 
 
 Mortgage Payable, definition of 1 69 
 
 Mortgage Payable A/C, explanation of 62 
 
 opening of 41 
 
 Mortgages Receivable 62 
 
 Net Worth 7, 12, 46, 170 
 
 Newspapers 51 
 
Index. 67 
 
 Paragraph 
 
 Notes Payable, definition of 1 71 
 
 Notes Payable A/C, explanation of 62 
 
 ****** ' C A ^ 
 
 opening or 41 
 
 Opening the Journal 9 to 13 
 
 " Ledger 14 to 34 
 
 Owe, what you 1 to 8, 1 72 
 
 Own, what you 1 to 8, 1 73 
 
 Owner's Capital A/C, explanation of 46 
 
 opening or I / 
 
 transfers to 59 
 
 Pencil, use of 1 75 
 
 Personal Accounts, explanation of 63 
 
 Personal effects 2, 1 76 
 
 expenditures 51 
 
 Costing 35 to 44, 59, 68, 69 
 
 after first month 1 02 
 
 daily transactions 69 
 
 definition of 177 
 
 rules for 43, 68, 69, 83 
 
 time for 68 
 
 Potatoes 73 
 
 Produce, definition of 1 78 
 
 gathering of 52, 53, 73 
 
 lost or destroyed 75 
 
 on hand 81 
 
 stored 53, 73 
 
 value of 53, 73, 81 
 
66 Index. 
 
 Paragraph 
 
 Produce, when sold 53, 73 
 
 when not sold at once 53, 73 
 
 Produce A/C, adjusting of 81 
 
 discrepancies in 81 
 
 explanation of 53 
 
 opening of 24 
 
 Profits of the farm 71 
 
 for month -59 
 
 Property, bought, deteriorated, sold 58 
 
 Property A/C, see Farm Property A/C. 
 
 Receipts, definition of 180 
 
 Red mk, uses of 88, 1 52 
 
 Repairs 49 
 
 Resources 1 to 8 
 
 definition of 1 82 
 
 Diagram 95 
 
 Rules, Cardmal VIII, 94 
 
 for closing books 79 to 94 
 
 for Growing A/C 73 to 77 
 
 for the Journal 1 3, 43, 83, 94 
 
 for the Ledger. . . . : 43, 44, 89, 94 
 
 for Loss and Gain A/C 86 to 94 
 
 for Personal Accounts 63 
 
 for posting 43, 68, 69, 83 
 
 Ruling, use of 1 83 
 
 Selling for cash 72, 73, 74 
 
 " on credit 72, 73, 74 
 
Index. 69 
 
 Paragraph 
 
 Stock, see Live Stock. 
 
 Stocks and Bonds A/C, explanation of 61 
 
 opening or 41 
 
 Sundries, meaning of 39, 183 
 
 Taxes and Insurance A/C, explanation of 57 
 
 opening or Zo 
 
 Telephone 50 
 
 Tomatoes 71 
 
 Tools 60 
 
 Total, definition of 1 86 
 
 Transactions, see Daily Transactions. 
 
 Transfer entries 59, 1 87 
 
 Trial Balance, definition of 1 88 
 
 Diagram 99 
 
 finding errors in 85 
 
 for later months 1 03 
 
 instructions for taking 84, 85 
 
 Trust, buying on 67, 125 
 
 Value of product 71 
 
 Vegetables 53, 72, 76 
 
 Wheat 71, 73, 76 
 
SEP 36 1908