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BOOKKEEPING   51
Set V.—D. E.—Farm Accounts (Alternative with Set IV.)

Special Features.—Farm accounting with, a variety of loss and gain accounts ; the use of Orders. Instructions :

(a) Books to be used—Business Papers, Journal Day Book, Cash Book, and Ledger.

(b) Business Papers :

  1. Inward.—Cheques on Apr. 20, Nov. 28; Bills on May 5, June

  2. Outward.—Cheques on Apr. 3, 15, May, 26, Aug. 12, Sept. 10, 20, Nov. 30, Dec. .11:

Bill on Mar. 20: Notes on Mar. 1, May 1; Deposit Slip on Mar. 10; Orders on

Apr. 30, June 30, Sept. 30.   1"

(c) flake out business papers, journalize, and write up the Cash Book ; post ; take a Trial Balance; take stock; make out a Loss and Gain Statement, a Summary of the Farmer's Capital A/c, and an Asset and Liability Statement ; close the Ledger as in Sets I. and II.

Directory :

Acme Sugar Factory, The, Berlin, Out. Dominion Machine Co., The, Toronto, Ont. Brock Carriage Co., The, Markham, Ont. Parker Co., The Wm., Peterboro, Ont.

Dean, Jas., Ellesmere, Ont.   Red Star Seed Co., The, Guelph, Ont.

Davis, 11'n,., Stou$ville, Out.   All Others, Agincourt, Ont.

Ledger Lines:

J. L. Graham (Cap. A/c) H+ 4 Farm Produce    H+10 Farm, Stock    H+ 6

Cash    II+14 Bills Payable   II+ 3 4Scholastic Bank   H+11

  1. Pringle    II + 4 3 Farm, Implements    II + 5   W. Kellow    H + 6

QReal Estate    H+ 3 Expense    H+ .10 Loss and Gain    H+ 4

  1. Roberts    H+ 3

Notes.

  1. The Farm Stock, Farm Implements, and Farm Produce accounts may be kept like Merchandise and Expense accounts, the Dr. side showing costs, the Cr. side showing proceeds, and each account being closed into Loss and Gain Account. (See also Section 100.)

  2. A Market or Farm Produce Book should be kept for the details of Petty Sales. From this book the totals would be transferred to the books of account, say, once every month. No reference has been made to such a book in this set. Petty Sales for cash would be kept separate from Petty Sales on account ; the items sold to each person on a/c would be kept by themselves and transferred each month in totals to the Journal, or even directly to the Ledger.

  3. An Expense Book might also be kept in the same way for details, cash items being kept separate from those on a/c ; cases of barter (See May 12) would be entered in the Petty Cash Sales and also in the Petty Cash Expense. Sales and purchases of Farm Stock would be entered in the Journal.

Transactions—Set V.

Agincourt, March 1, 19—. J. L. Graham has this day commenced to keep a set of books for the purpose of recording the transactions of his farm business.

Assets : Cash $450 ; Real Estate—Farm of 100 acres valued at $80 per acre, Buildings valued at $3500 ; Farm Stock $1000 ; Farm Implements $650 ; Farm Produce—Grain, Hay, etc., $300.

Liabilities : Note favour of J. Miller, dated Feb. 9 at 6 months for $600 ; amount due W. Kellow on ale $20.

March 10. Arranged to open an account with the Scholastic Bank, Agincourt, and deposited the following : 10 x $2, 20 x $10, and coin $10.

Mar. 20. Sold to the Red Star Seed Co. for cash 200 bu. Seed Oats @ 55c.

Apr. 1. Engaged T. Roberts and S. Pringle as farm hands for 8 months at $25 per month each. Apr. 3. Bought from S. Fensom, Seed Grain $25, and gave cheque in payment.


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