Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1885-11-14

+, counts. Interest should never enter into
| an account at all. 1t should be used only
| on the outside, as it were, or, more plainly,
after the account is completed. We must
| remember that to make an account exact.
only actual value and cost must enter into
ii. Interest bears no relation whatever to
A., the account, but only to the capital in
vested-that is, interest is neither a part of
the value nor part of the cost, but only a
| part of the profit, and as such should be
| considered. What has been said of interest
will also apply to rent
Briefly, farm bookkeeping may be divided
into two classes-businesS accounts and
| crop accounts. By the first, we ascertain
the gain or loss on our capital invested. In
this will appear all real and personal &C
counts all actual business transactions.
and thus all moneys paid for rent, interest,
taxes, labor, stock, etc. Be sure never to
allow anything but actual business trans
actions to enter into this account. If no
land is rented, there will be no rent ac-
count; if no money is borrowed or lent
no interest, and so on. Make no charge
for your Own labor, or for any member of
your family-your living, family keep and
profits are your pay. Ii is altogether I'M
necessary to keep account of hay, grain,
straw, etc, grown and fed upon the farm.
The returns for these will be found in the
increase in value of the stock and manure.
(Of course all feed and manures purchased
will come into the accounts) Neither is it
necessary to make charges for any thing
grown on the farm and usedsin the family
for reasons as obvious.
Open these accounts by taking stock of
everything you possess at fair market
value. Add any notes or accounts owing
to you, and cash on hand; subtract all
notes or accounts owing by you. The re-
suit will represent your capital. Open &C.
counts for grain, implements and stock
charging only actual transactions in each
keep separate accounts for labor, interest,
expenses, etc. At the end of the year take
stock again, balance your books, and the
difference between your stock at the end
and at the beginning of the year will rep
resent your loss or gain. In practice it is
unnecessary to take stock of household
furniture, clothing, or even goods or pro
duce on hand that are to be used in the
family, as these are not part of your bust
ness investment, and are practically the
same at any time. All small articles about
the house used in connection with milk,
etc, must be taken into account as well as
everything used in connection with the
farm, such as feed and implements.
In the crop accounts the capital invested
on the crop value of land, seed and ma
nure); wages tcost of working land putting
in, taking off and marketing crops, and
taxes, represents the debt side, or actual
value OF investment plus the cost The
credit side or actual value of returns is rep
resented by the value of land, manure left
in land, and market value of crop The
difference between thedebit and credit rep
resents the loss or gain. Neither rent nor
interest has anything to do with this ac-
count. The reason for this will be plain, if
we consider why these accounts are entered
into. We keep an account with crop
that we may ascertain whether that par
ticular crop pays or not. The transaction
is exactly similar to one in trade.-TEx-
change