Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-27
KEEPING FARM ACCOUNTS;
CLOSING RECORDS FOR YEAR


farm accounts three records are neces-
sary:
ID An inventory at the beginning
and at the end of the year.
90 An account of all money paid
out or received.
90 A record of all work done by
men and horses during the year.
Previous articles in this series on
the last two Saturdays have already
given detailed explanation of how
to make an inventory and a satsfac-
tory accounting system. A descrip-
ton is given herewith of the final
record
Closing the Accounts at End of Year.
Considerable time is required to
close the set of accounts. However,
this figuring should come in the win
ter at a time when other work is
usually slack and when the weather
is more favorable for working indoors
than out A definite order should be
adhered to in closing the accounts.
This order may be as follows:
ID The first step is to take a final
Inventory in the same manner as at
the beginning of the year. This in
ventory should include all bills that
other persons owe the farmer and all
bills which the farmer owes to other
persons.
(2) The list of bills payable should
be inspected ara any items that have
not yet been charged should be
charged to the proper accounts. For
instance, if SIS for labor is still due
the hired man at the date of closing,
this item should be entered as
charge against labor.
(3) The list of bills receivable
should be inspected, and any items
that have not yet been credited
should be- credited to the proper ac-
counts. For instance, if the creamery
owes the farmer $65 for milk and
neighbor owes him for some feed, the
SOS should be entered as a credit to
the COW account and the feed item
entered as a credit to the account
from which the feed was originally
taken.
Record of Feed Used.
a. The record of all feed trans
ferred to the livestock should be
completed, charging the various ami
mails and crediting the various crops.
Produce raised and fed is charged
against the animals at what it is
worth on the farm. Suppose, for in
stance there were eighty acres of
bay with total yield of 12O tons GO
tons Z which had been sold and
credit kentered) and that the feed
disposal memorandum showed 60 tons
fed to the cows and Is tons fed to
the horses, leaving % tons on hand.
If hay is worth S12 per ton at the
barn, the hay should be credited by
entering on the right-hand page of
the hay account $50 tons to cows at
s12-$720; Is tons to horses at $12-
$780," Now, charges against the cows
go tons of hay at $12," and against
the horses '15 tons at $12." should be
made When the value of the hay on
hand, % tons at s12. as shown in the
record inventory, is entered as a
credit to the hay account, the credits
to this account will be complete.
(5) The various classes of live
stock should be credited with the
position of unused feeds which were
charged to them at the time of pur-
chase or harvest. These farm items
WILL of course. appear in the second
inventory under the group headed
"Feeds, produce and supplies"
(6) The use of pasture should be
credited directly to the real estate or
to pasture account and charged
against the animals using it. The
ar cunt charged for pasture should be
as nearly as possible the market
price, that is, the price for which pas
ture rents in that region.
% The value of produce used in
the house. if not noted before, should
be entered. The proper crops or ami
mails should be credited and charges
made against the personal account.
This item includes estimates of the
quantities of milk, eggs, potatoes and
osher products used by the family.
80 The entry of value of board,
produce or other allowances furnished
to the laborers should be completed.
These charges should be made
against labor and the proper accounts
credited
t9) The value of unpaid labor, such
As work by the farmer himself, by
boys in the family to whom regular
{ wages are not paid, and milking or
other farm work by women of the
amily should be entered. Make these
charges against labor and credit the
personal account.
Allowance for Manure.
Q0) The animals should be credited
with the value of the manure pro-
duced and this amount charged
against the crops to which it was APP
piled. The valuation of the manure
should be made at about the market
price at the farm. To find the guam
tity produced. a record should be kept
of the number of loads hauled to the
fields.
I'D The proper amounts for the use
of the buildings by crops, animals, the
farmer, or laborers, should be entered
Each crop, each class of animals, the
personal account, and the labor ac-
count should be charged with its
proper proportion and credit of the
real estate account. AS a general
rule, to 10 per cent. of the current
value of the buildings may be charged
as rent. The proportion of the whole
sum which each class of animals or
each crop should pay will have to be
determined by the farmer in proper
ton to the amount and value of the
space occupied by EACH Charges for
the use of the buildings on one farm
were made as follows:
VALUE of barns, $1,000; use for one
year at 10 per cent, 5000