Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-20
KEEPING FARM ACCOUNTS;
RECORD OF PROFIT AND LOSS

MS 10 TIC oeCOllu VI q series Ol
three ideas of great value to every
farmer, large or small. The first one
was published last Saturday.
The United States department of
agricultures new bulletin entitled,
"A System of Farm Cost Account
Ing gives a detailed description of a
simple system which any farmer may
use whether he has a knowledge of
bookkeeping or not. With an aver
age expenditure of time of about five
minutes day, and a number of
hours work at the end of the year
TO close the accounts, the farmer may
obtain definite idea as to whether
ne IS making or losing money on his:
business and how he can improve
MS business to make more money.
In previous article the making
of the inventory was described. The
accounting system is described here
with, and third installment, to be
published next week, will describe
the final record.
The annual inventory shows the
annual gain or loss on the farm bust
ness, but it does not show what crops
or what animals have made d gain
or loss. On nearly every farm where
accounts have been kept, the gain or
loss for the year resulted from losses
on several accounts and gains on
several accounts. In every case the
farmer was much surprised to see
which accounts showed gain and
which loss. Results like these can
only be shown by a complete system
of accounts.
Financial Record.
record of the receipts and expen-
Tifnras, &c, G
complete set of accounts. For this
purpose a hook called by stationers
broad daybook,'' or journal" is
used. The requirements are that
there be place for date on the
left hand side of the page, broad
space in the middle of the page in
which to write explanations, and
columns ruled for dollars and cents
at the right. The page is ruled and
items are entered as shown in the
sample account with potatoes in ia
ole 2. The financial record book at
the end of the year becomes the
completed account book, and will
have summary of labor entered in
1t from the work record as described
later.
A separate account is kept with
real estate each crop grown, each
class of animals, machinery labor,
interest, persons dealt with or bills
payable and bills receivable, and with
such other items as may be found
necessary or convenient
The items that make up bills pay
able and bills receivable should he
listed in the inventory at the end
from memoranda or in any other
way which may be found convenient.
In closing out the inventory at the
end of the year, the items for WHICH
money is due or owing should be
charged or credited to their respec-
tive accounts. When these bills are
settled, during the early part of the
following year. the entries should be
made under bills payable or bills re-
ceiyable. as the case may be.
In this book two pages facing each
other are taken for each account.
The name of the account is written
at the top of the page The right
hand page is marked Credits" and
is used only to record credits to the
account. The left-hand page IS
marked Charges" and is used only
for charges against the account. The
pages then appear as shown in the
sample account with a crop of pota-
toes, table ?.
Table ia sample account with
potatoes in 14-acre field:
CHARGES.
1918. Item Amt.
June g. Seed, 100 bushels, at
40 cents ......... .....$ 12.0O
4. Corrosive sublimate,
ounces ................ 80
10f Seed, 43s4 bushels at 90
cents ............... 24.o6
II, Corrosive sublimate,
ounces ............,... .oO
Julv II Paris green, 6 pounds. 1872
Is. Lead arsenate, 100 lbs. 14.40
Use of land, per cent.
I on 800 per acre. IN00
Man labor, 1876 hours,
at 1902 centS......... 15l.4O
Horse labor, S39 hours,
at 1916 cents. ........ 1915
Equipment labor S39
hours, at 35 cents.... 1886
Manure, 60 per cent. of
1910 application 49,. 100
Manure, 100 per cent of
1911 application....... 5000
Total charges. ................S493. 80
Gain ........,.............' ooo'o1
Grand total,...........sSS 1881. 50
CREDITS.
1913. Item. Amt.
Oct. 5. Sold, 226 bushels at
.6OiS cents ............ $4,000
20. Sold, $40 bushels at 81
cents ................. $500
Nov. l. Sold. PAL bushels at
s1.OS3 ................. 261.O2
Saved for seed, l35
bushels at S1........ 1880
Saved for home use, 16
bushels at so cents. $50
Residual manure, so per
cent. of 1911. 1890
Residual manure, 80 per
cent. of 1910. 600
Total credits ....,.$ SS1.S2
In the account book the items for
"charges" will occupy the entire left
hand page, and those for credits
the entire right-hand page.
:, Now, suppose that on a trip to town
: on June 1 one spends $1.4O for horse
ehoeing, SO for fencing, 50 for COW
feed, and receives a S65 check for $500
pounds of milk. The entries are made
as follows: The account marked
s'horses" is turned to, and on
the left-hand page is entered June
1-Shoeing, $40" The real estate
account is turned to and on the left-
hand page is entered, June 1-Fenc-
ing bought, So" The COWS" account
is turned to and on the left-hand page
is entered, "June Cow feed bought