Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1910-06-22
By
]. A. BEXELL, A. NJ.
Dean of School of Commerce,
Oregon Agricultural
College.
-
Copyright. 1910. by American
Press Association.

ly understood. An improvement addS
value to the property in the shape OF
equipment, buildings. drains. FENCES
and the like, while repairs merely
keep up the property. A coat OF paint
on an implanted building is an III
provement; r%epainting is classed IN
der repairs. This distinction is very
important in making an
improvements are added to the inven-
tory; repairs are not.
1t is convenient to devote a part Oh
the daybook to inventories and state
ments or if loose leaf books are used
to devote a special section to the SUD-
ject. The yearly profit or loss is de-
termined from the inventories as FOL
lows:
Net worth now ..........."...... S1O' ooa.9c
Net worth last year ............... S'4oo'9o
Net profit S'H0-
The net worth is, of course, the dll-
ference between the resources ana Ia
bilities.
The most satisfactory bill file is an
alphabetically arranged pocket nle
about 9 by II inches. In it should De
fled bills for machinery. implements
tools. live stock. furniture, etc., Whlch
will be subject to inventory; also re-
ceipts. Cancelled notes. certificates, I'M
portant clippings from periodicals ana
n other matter Of interest. Proper
" kent. the bill file will prove invaiua-
bic for future guidance.
M... Sa&iefactorv Method.
! The method of determining the prom
shown above was unsatisfactory De
cause it did not point out the source
of the proits or losses. For this pur
] nose it is necessary to adopt seVera
additional records.
r The ~cashbook, illustrated on 10TH
&. is the basis Of classification. III
snecial columns take the place OF
Y ledger, All money columns except III
Y total column are known as d1strlou
J. ton columns. They are in reality SCI
arata accounts. and this form mlgh1
q therefore. properly be called a con
20 bined ledger and cashbook. The forl
suggested has the important adVantae
If of being self balancing. A trial Old
or ance can be taken at the emo OF edc
page. month or year. The process {
nrenaring a financial statement b
- comes extremely simple by this met
III cd.
An abstract of the totals of the V
- rious columns is all that is necessar
Il Manv successful farmers keep
IL other books than a record of transa
ei tions with the bank. b recelp
ID and nayments are recorded, as shoY
as in Fig. 8. except that the payee
the check is entered in the payne
Is items column. while fuller expianatl
I'D is entered on the check STUB. N
.hu Fig. A. 49,,
IN The "banking habit carries with
BILE many advantages. Important m
nal them are:
j 2 First.-The depositor's credit and
Thence is measured largely by the S
red and regularity of his bank account
ong Second.-A tendency to econom
!. it nv a desire to increase the banK
1t ance.
will Vhird.-The banker becomes y
With hookkeeper and business counselor.
This Fourth.-Security against fire
les. robbers.
oin- Fifth.-Indorsed checks are both
'iac. ords and receipts of payments.
benefit to the commul
NV keaning the money in circulate
Household Accounts.
: so TT will be seer that no provision
ned, baan made in the general casht
5 on for senarate items in the household
ring counts. This is left Tor d ~
ould keeper. The fact that her nell
d be somewhat limited from a busi
not noint of view is no argument In I
of loose and careless Methods OF
Que counting.
Most ho~usekeepers prefer to re'
old q fxad allowance for household
nenses whenever it is practicable.
few our present purpose we will SUI
mails, that the following agreement has
entered into between the farmer
80 his wife:
1Klns Tn addition to the cash ALLOW
leple- vegetables, poultry and dairy pro
VIZ are furnished from the farm at
y ket price. The proprietor give
-, wife an allowance OF S9O eacn IL
ity Of ei'nei = lie oosh ovnandi
~ His wife in turn enters her alloN
90 or in her record. Bills for fur
:. will clothing and utensils are filed
those bill and receipt file, same as
mr. the farm accounts.
fol- The Balance Sheet.
val The balance sheet is a cone
statement Of the financial oper
er cent for a given period. 1t exhin
tabular form the totals of the IL
800. 10 ries at the beginning and end
$500. period, the resources and l1at
the cash receipts and expeno
uestion the profits and losses, the net pl
sidered loss and the net worth. 1t enaD
Sup proprietor to analyze his bushes
or con- -.--;aorob bio ooo1raou and f0 fE