THE RURAL SCIENCE SERIES L.H.BAILEY THE FARMER'S BUSINESS HANDBOOK mmoBtmm iiiiiiii[i!iiiiiii(iiiiiiifiiiiiii'iiiiiiHi!iiiiii:!iiiimiimt!!imiii!iiiiiiimtiiiiiiii:. ■ >J T?0 «tCTtSD!4ST son !,?n^»» UNIVERSITY of CALIFORNIA LOS ANGELES LIBRARY J Digitized by the Internet Archive in 2007 with funding from Microsoft Corporation http://www.archive.org/details/farmersbusinesshOOrobeiala W&t l&aral &titnte &ttit& Edited by L. H. Bailky THE FARMER'S BUSINESS HANDBOOK TO* l&ttral fecunce fe>er«0 The Soil. The Spraying of Plants. Milk and its Products. The Fertility op the Land. The Principles op Fruit-Growing. Bush-Fruits. Fertilizers. The Principles op Agriculture. Irrigation and Drainage. The Farmstead. Rural Wealth and Welfare. The Principles of Vegetable-Gardening. Farm Poultry. The Feeding of Animals. THE FARMER'S BUSINESS HANDBOOK A MANUAL OF SIMPLE FARM ACCOUNTS AND OF BRIEF ADVICE ON RURAL LAW BY ISAAC PHILLIPS ROBERTS DIRECTOR OF THE COLLEGE OF AGRICULTURE AND PROFESSOR OF AGRICULTURE IK CORNELL UNIVERSITY AUTHOR OF "FERTILITY OF THE LAND" AND "THE FARMSTEAD" THIRD EDITION HE MACMILLAN COMPANY LONDON: MACMILLAN & CO.. Ltd. 1909 All right* reterwd Copyright, 1903 By THE MACMILLAN COMPANY Set up and electrotyped, March, 1903 Reprinted, June, 1906, January, 1909 Mount $11* aaant $?r?aa J. Horace McFarlnud Company Harrisburg, Pennsylvania PREFACE It is said that the farmer should be a scientific man. I like to think of him, also, as a business man. In fact, unless he is a good business man he is not a good farmer. He must not only grow crops, but he must buy and sell, and must be a man among men. Yet, how few of our farmers ever keep a consecutive account of their farm operations, and how seldom can they tell how much the year is worth to them ! This little book has grown out of many years' teaching farm boys. It is intended to meet the condition of the average farmer ; those that conduct large enterprises will have a professional accountant, and, perhaps, a legal adviser, and will not need such an elementary treatise as this. That part of this work which treats of Rural Law is written by Herbert Delavan Mason, of the New York State Bar. It is hoped that this treatment of many of the commoner and more usual aspects of the law applicable to rural matters will frequently be found of assistance (v) vi "Preface to the reader in determining and guarding his rights; but it is not of course intended that it shall do away with the necessity of counseling with the family lawyer on all important matters. Indeed, one of the chief objects of the article is to warn its readers of the very great necessity of freely seeking such counsel. It will be noticed that many of the statements of the text are ex- pressly limited in their application to certain localities; and in all cases the reader should determine, before he undertakes any important course of action, what are the statutes and cus- toms of his own state and locality. If Part I is used as a text -book in schools and colleges, the instructor should add, omit or change a few items in the Blotter, so that neither the Trial Balance, nor the Gain and Loss state- ment, will be identical with those on pages 71 and 76. Each transaction noted in the Blotter should be stated clearly by the teacher some- thing as follows: "On April 25, four tons of hay were taken from the field and placed in the cat- tle barn." (See page 49.) The pupil should be asked to name the debtor and the creditor in this transaction. The answer should be something as follows : "Live Stock Dr. Hay Field Cr." Freface vii When the pupils have written in their Blotters the accounts as above, the teacher should give details of the transaction: "four tons of clover hay at seven dollars per ton." In like manner proceed with all other accounts in the Blotter. The Inventories may also be modified, in order to prevent the pupils from making a mere copy of the printed pages. If time permits, it is always best to have each item read and dis- cussed before it is recorded. After the Inven- tories, Work Reports and Blotter are completed, the pupils should be given one or two weeks in which to post the items to the Ledger, dis- tribute and enter Tool Account, page 51, make out Trial Balance, page 71, enter the Inventories at the end of the year, page 72, and make a state- ment of Gain and Loss by both methods, pages 73 and 76. I. P. ROBERTS. Cornell University, Ithaca, N. Y. February 28, 1903 CONTENTS PART I— FARM ACCOUNTS CHAPTER I PA08 Why Accounts Should be Kept 1-21 CHAPTER II The Kinds op Accounts 22-41 CHAPTER III The Blotter . . 42-52 CHAPTER IV The Ledger 53-69 CHAPTER V The Trial Balance . 70-81 CHAPTER VI Accounts with Particular Fields and Crops 82-100 ax) x Contents CHAPTER VII Mi Accounts with Animals 101-142 Milk Accounts 101 Poultry Accounts 110 Accounts with Rations of Farm Animals 116 CHAPTER VIII Accounts with the Farm Household 143-152 PART II— BUBAL LAW By H. D. MASON CHAPTER IX Property, Deeds and Conveyances 153-169 I. Real and Personal Property, and Distinctions Be- tween Them 153 II. Deeds 156 IH. Abstracts of Title 159 IV. Leases 163 V. Tenant's Right to Remove Crops at End of Term . 167 CHAPTER X TRE8PASS AND WATER RIGHTS 170-173 I. Trespass 170 H. Animals 170 III. Water Rights 171 IV. Drainage 173 Contents xi CHAPTER XI PAGE Highways and Roadsides 174-183 I. Use of Roadsides 174 II. Impassable Highways 175 III. Laws Affecting Travel on Highways 176 TV. Side Paths 180 V. Watering Troughs and Shade Trees 181 VI. Guide Boards 182 VII. Weeds Along Highways 182 CHAPTER XII Legal Fences 184-192 I. What a Legal Fence Is 184 II. Line Fences 185 III. Road Fences 190 IV. Incorrect Line Fences Made Legal Boundary by Lapse of Time . 191 CHAPTER XIII Contracts 193-207 I. In General 193 II. Warranties Upon Sale of Horses or Other Animals . 205 CHAPTER XIV Mutual Liabilities op Employer and Employee, Buyer and Seller 208-213 I. Liability of Employer for Acts of Employees . . . 208 IL Mechanics' Liens 210 III. Artisans' Liens 212 IV. Liens of Hotel, Boarding-House, Lodging-House and Livery Keepers 213 xii Contents CHAPTER XV PAGE Notes, Due -Bills, Chattel Mortgages and Bills of Sale 214-227 I. Promissory Notes 214 II. Due-Bills, Orders, Receipts 224 III. Chattel Mortgages 225 IV. Bills of Sale 227 CHAPTER XVI Gifts, Wills, Advances, Usury and Taxes 228-240 I. Gifts , 228 II. Wills 231 III. Advancing Money or Property to One's Children . 236 IV. Usury 237 V. Taxes 238 VI. Real Property Purchased with Pension Money Ex- empt from Taxation 239 CHAPTER XVII Powers of Attorney, Affidavits, Legal Tenders . . 241-244 I. Powers of Attorney . .' 241 II. Affidavits 242 III. Legal Tenders 243 PART III— INVENTORIES FROM THE CENSUS— 245-281 I. Agricultural Population 248 II. Farm Acreage 250 III. Rented Farms 251 Contents xiii PAQE IV. Acreage of Rented Farms 253 V. Value of Rented Farms , .... 255 VI. Owners of Rented Farms 257 VII. Animals in Barns and Enclosures 259 VIII. Number of Domestic Animals 261 IX. Number of Neat Cattle 263 X. Number of Horses, etc 265 XI. Number of Sheep, Swine and Goats 267 XII. Number and Value of Neat Cattle 269 XIII. Number and Value of Sheep and Swine 271 XIV. Average Value of Neat Cattle 273 XV. Average Value of Horses and Mules 275 XVI. Average Value of Sheep, Swine and Goats .... 277 XVII. Dairy Cows and Dairy Products 279 XVIII. Counties Having $1,000,000 and Upwards of Dairy Products 281 XIX. The Importance of Agriculture as a Source of National Wealth, as Exhibited by New York State, 1899 282 XX. Values of Farm Property and Farm Products . . . 283 XXI. Relative Agricultural Ranks of Various States . . 284 XXII. Relative Number of Persons Engaged in Agricul- ture 291 XXIII. Agricultural Education 292 Index 293 THE FARMER'S BUSINESS HANDBOOK PART I— FARM ACCOUNTS CHAPTER I WHY ACCOUNTS SHOULD BE KEPT Most persons not engaged in regular mercan- tile pursuits think it unnecessary to keep accurate account of the little business they transact, but trust to memory, or to brief memoranda of the larger operations. Usually the small farmer keeps no account whatever of his dealings with other men, or with his fields and live stock. If he does jot down memoranda of his dealings with his neighbors, he is likely to carry his pass-book in the side pocket of his "every-day" coat, which, after being thrown on the fence or on a load of hay, parts company, in some very mysterious way, with the precious little book. When the owner of the coat goes on the witness-stand he must trust solely to memory. Now and then a farmer of unusual ability and enterprise makes a sincere attempt to keep account of the larger transactions A (1) 2 The Farmer's Business Handbook of the farm, but unless he employs an accountant there is likely to be no system, nor continuity, nor intelligible result. Even if an accountant is employed, the methods are generally those used in ordinary mercantile bookkeeping, which, not be- ing adapted to farm accounts, may require two Philadelphia lawyers to interpret. In any case, farm accounts, if useful, are es- pecially difficult to keep. This is not because the principles of bookkeeping cannot be made to serve as well in farm operations as in mercantile pursuits, but because many of the entries must be estimates rather than statements of actual transactions. Most men, farmers included, lack or have lost the habit of study. It is an age of haste, much reading and poor mental digestion. The demands of modern life are so numerous, varied and exact- ing that the tendency is inevitably to learn a little of many things instead of much of a few things. Few people master perfectly the details of their profession before relegating them to sub- ordinates. The farmer, like other business men, must make himself familiar with every detail be- fore he is fitted to direct the labor of others successfully. He should substitute knowledge for random guesses; he should know his real financial condition. Mere estimates of worth and profit seldom prove to be correct. Farm Accounting is Difficult 3 This little treatise is prepared for those who wish to know at the end of each year what are the assets, liabilities, net worth and profits, and also which crop and which group of animals give profit and which give loss. Only by keeping record of each cow can it be determined which ones are be- ing kept at a profit and which at a loss. The lean kine may use up the profits of the fat kine. How many farmers can tell how much they were worth at the beginning of any given period, or can state what were the gains or losses of any year's opera- tions ? A man may be able to say that he started in business in 1860 with $1,000 and that in 1890, thirty years afterward, he was worth $15,000; but he will have no exact knowledge as to whether he secured profits in producing wheat or wool, cotton or cattle, potatoes or poultry. He may have made $1,000 in cattle in a single year, twice the yearly average profits, and may have lost $600 in wheat or wool; but in the absence of accounts there is no way of determining where or how the gains were made or the losses in- curred. Few farmers, or indeed, small dealers or mer- chants in towns, have ever taken stock or in- ventoried their belongings. It is a surprising fact that while most business men are striving faithfully to secure a surplus, many at the end of the year never note the advance or deprecia- 4 The Farmer's Business Handbook tion of their property; much less do they keep a record by which they may determine whether there were any losses or profits, and whence each arose. Sir Henry Gilbert, of Rothamstead, England, an eminent investigator, when visiting the United States a few years ago, tried to find out by many inquiries in well-to-do families what proportion of the expense of an American house- hold was incurred for meats, for breadstuff s, for butter, for service, etc. He could not find a single householder who could give him in- formation on these points. The American too often pays bills without inspection and does not even preserve the receipts. This busy, scien- tific worker could tell both the total and per capita expenditure of his household for butter, meats, bread, clothing, servants and other items. But he was unable to make auy comparison be- tween English and American household expenses because he was unable to secure the detailed, or even the gross expenditure of persons in cir- cumstances comparable with his own. While traveling in England I noticed that even the third-class passengers with their harvesting implements, on the railways going to the coun- try districts, carried little blank books in which they noted down their expenses. In America, it is not uncommon to find a professor or a Financial Carelessness 5 learned institute lecturer who cannot keep his traveling expense account correctly for three days at a time. I think there are two chief causes tending to produce financial carelessness in the United States: Children are rarely taught to render an account of expenditures at the end of the month. Although a little bookkeeping is taught in some schools, it is sometimes about as workable on a farm as an ox-cart would be on a railway. Again, in the last half century, life has been so much easier in America than in Europe — both necessi- ties and comforts have been secured with so little effort — that it has not seemed worth while to note critically the outgo and the income. But these conditions are not likely to remain the same for another half century. The effort to curtail expenses is always difficult and unpleas- ant, but far more so if there are no itemized data which may help to indicate just where to begin or where curtailment would least affect comfort and pleasure. Most sane people are extremely unhappy when their outgo is equal to or exceeds the income. Some are really unhappy only when the bills come in; while others live in dread of petty debts scattered they know not where, and in amounts which have been forgot- ten, not knowing whence the next dun will come or how or when disgrace may fall upon them. 6 The Farmer's Business Handbook How often I have seen a noble, industrious fanner marketing his chief money crop of the year, the wheat or the wool, or the fat live stock! With what honest pride he laid the check for several hundred dollars on the bank counter and then stuffed that "wad" of bills into his "side pocket!" Then with what a cheerful voice he asks at the desk of the grocer for the amount of his account! "Fifty-six dollars and seventy- two cents," the clerk responds. "There must be some mistake; it cannot be more than half that." The items are looked up, the charges are correct, the bill is paid. In a voice out of which some of the courage has gone, he asks for his account at the dry goods store. This is nearly one hun- dred dollars. He disputes the account, says he never had the goods, there is some mistake, they have been charging neighbors' purchases to his account; he takes an hour to inspect the items, pays the bill under protest, and, concluding that he has had enough unhappiness for one day, takes something to drink and lets the half dozen other fellows wait for their pay. For it will be some pleasure to carry even a small roll of bills for at least a few days in the year. But he has not learned his lesson, for he carries home no itemized bill for study; he keeps no account and hence he will never know what his real financial condition is. Because it is "too much The Inventory 7 trouble" to keep track of his business, he will go on having a few hours of happiness and many gloomy days; each year he will lose faith in himself, in his fellowmen and in his business. INVENTORY The simplest method of determining gains and losses is to take an inventory at some stated time each year. In many of the states, as New York, where the spring is really the beginning of the farm year and only a little grain and roughage1 will be on hand, the in- ventory would better be made either the first of April or May. It is assumed that any in- telligent farmer, from such inventory, will be able to tell at least once a year the amount of bills receivable and bills payable, that is, how much is owing to him and how much he owes, and the amount of net assets of personal property. It is surprising how much the judgment is developed in making a detailed list of one's belongings, with values attached. When the second inventory is made, at the end of the year, the breakage, losses and depreciation of some of the property will stand out in bold re- lief. It is said that one can winter a horse and 1 Roughage is any coarse feed, as hay, straw, corn-stalks, and the like, 8 The Farmer's Business Handbook bring him through in good shape, ready for use, more certainly than he can a hand-rake. The need of careful driving may be emphasized by the inventory as it cannot be in any other way, when, because of careless driving and feed- ing, the horse valued at $150 at the beginning of the year is worth but $75 at the end of the year. Every provident housewife should have a list of all the principal articles under her control, with date of purchase and cost. Whenever the cost price is not known, present estimated values should be affixed to the list. I know of one family that keeps such an inventory in a small tin- box, which is placed in another box buried in the ground near the house. In case of dam- age or loss by fire, such record is likely to be of great value, for the insurance companies re- quire a specific statement in detail as to the character of each article and its value before adjusting a partial claim. Eecently, at a sale of household goods, the inventory was used as a basis for setting the prices of these articles. By this means a uniform average of 50 per cent was obtained for articles in good condition. The following brief inventory of stock, tools, household goods, assets and liabilities will serve to show the simplest possible method of determi- Inventory of Personal Property 9 ning gross gain or loss at the end of each year. Usually the inventory will be more extended than the one given. The household belongings are not given in detail here as it should be in practice, because they would take too much space. Inventory taken May 1, 1900, of the personal property of John Doe Teams 1 gray mare, Nell, 10 years old $100 00 1 gray horse, Jim, 12 years old 80 00 1 bay driving horse, 7 years old 225 00 1 bay mare, Gip, 10 years old 100 00 2 sets double harness, at $20 and $30 50 00 4 horse pails 1 00 5 blankets 7 00 2 whips 2 00 2 curry-combs, 2 brushes 3 00 1 set single harness 40 00 2 tons horse hay, at $10 per ton 20 00 Total $628 00 Live Stock 3 milch cows, Fan, May and Spot, at $40 $120 00 2 milch cows, Snip and Roan, at $35 70 00 2 yearling heifers, at $15 30 00 1 steer, 2 years old 35 00 1 three-year-old bull 150 00 15 pigs, at $5 75 00 30 chickens, at 40 cents 12 00 Total $492 00 10 The Farmer's Business Handbook Farm Tools 1 self-binder $125 00 1 mower 80 00 2 plows, at $5 and $8 13 00 1 double harrow 12 00 1 cutaway harrow 13 00 1 grain drill 50 00 1 farm wagon, trees and yoke 75 00 1 light wagon 30 00 1 steel square 75 1 hand saw 1 00 2 spades 1 25 2 round -point shovels 1 25 10 grain sacks 2 00 4 hay forks 3 00 2 four-tined forks 1 25 Total $408 50 Farm Products 420 bushels of wheat on hand unsold, at 75 cents $315 00 Total $315 00 Bills Receivable Note of James Burroughs on demand without interest $163 25 Note of John Price, 2 months, interest at 6 per cent 376 00 Total $539 25 Bills Payable Store bill, C. Bessy $76 00 Grocery bill, Henry Bell 31 00 Total .,......,„ $107 00 Summary and Realty 11 Cash on Hand In bank $350 00 On person 25 00 Total $375 00 Fakm Household As per detailed statement filed $625 00 Total $625 00 Summary Teams $628 00 Live stock 492 00 Farm tools 408 50 Farm products 315 00 Bill receivable 539 25 Cash on hand 375 00 Farm household 625 00 $3,382 75 Less bills payable 107 00 Net assets $3,275 75 Real Estate Farm, including buildings and other better- ments, 100 acres at $50 per acre $5,000 00 Mortgage $1,500, and two months' accrued in- terest at 5 per cent, April 1, 1900 1,512 50 Net value in excess of mortgage $3,487 50 Net personal property 3,275 75 Total net assets April 1, 1900 $6,763 25 A summary of the financial conditions at the end of the year follows. The inventory at the 12 The Farmer's Business Handbook end of the year should be made as at the be- ginning. In the text the values have been assumed since the method of taking the inven- tory in detail is shown on page 9. However, in practice, the details should be set forth clearly, and from them the summary which follows would be made. It should be noted that the values, as set down in the second summary below, have changed, some being larger and some smaller, but their totals exceed the values at the begin- ning of the year by $831.25, which is profit. Summary April 1, 1901 Teams $650 00 Live stock 526 50 Farm tools 396 00 Farm products 200 00 Bills receivable 689 25 Farm household 726 25 Cash on hand 250 00 $3,438 00 Less bills payable 28 00 Net personal assets $3,410 00 Value of farm $5,000 00 Less balance of mortgage unpaid 815 50 Net .. $4,184 50 Net value of all property $7,594 50 Net value of property April 1, 1900 6,763 25 Gain $831 25 The Value of the Farm 13 While these inventories and summaries made at the beginning and the end of the year are of great value, they do not show whence the profits were derived — that is, whether secured from teams, live stock or wheat field. In the next chapter forms are given for more detailed accounts, with the view of determining, so far as possible, the exact sources of all profits and losses. There is one other factor to be considered — the depreciation or increase in the value of the farm. In the above inventory, taken at the end of the year, this factor has not been noted, but it is not uncommon for the value of a farm to change somewhat even in a single year. There may have been a decrease not only in the selling price of the farm, but in its real value, as meas- ured by the profits. But usually the fluctuations of farm values are not likely to be large in any one year. An increase in value may be due to some unusual betterment, as the erecting of a building or the thorough draining of a wet field; or an account may have to be taken of ordinary depreciation of buildings, fences, etc., or the farm, as a whole, may be slightly less or slightly more fertile than at the beginning of the year. All of this must be left to the judgment of the owner, but such judgment should be conservative. It is bad to deceive one's neighbor, but it is infinitely more harmful to deceive oneself. In 14 The Farmer's Business Handbook the former case, the deception is likely to be corrected in time, but in the latter case the de- ceiver and the deceived are the same person and there is no outside party to correct the error. It may be said that the bills receivable, $689.25, and the cash, $250, together, are more than equal to the unpaid mortgage, and that it might have been better financiering to have paid off all the mortgage, although the working capital would have been reduced to $123.75. Just here, how- ever, is where most farmers make their mistake. They provide too little working capital and are thus debarred from taking advantage of "selling money dear," or of purchasing something cheaply which may be turned into more money later at a profit. It should be said, however, that if a man has little business ability he would better "keep near shore" — that is, pay off the mortgage and carry on a smaller and safer, though less profitable, business. It will be noticed that the financial condition of the farmer whose business has been set forth briefly is most excellent. The mortgage, so far from being a dangerous incubus, is a positive stimulant to intellectual effort. Most eminent financiers secure profits by the judicious use of other people's money. As the secretary of a flourishing western building and loan association puts it, "We buy money (borrow it) at five per The Question of Mortgages 15 cent and sell it (lend it) at ten per cent." If a farmer has his business well in hand, and has placed the mortgage as part of the purchase price of his land, it frequently becomes a blessing in disguise. It is easily proved that a moderate mortgage may sometimes be a positive help to- wards prosperity. The conditions we are con- sidering are somewhat similar to those of most merchants in the cities, who rent the buildings in which the business is done instead of owning them, in order to have all their funds available for working capital. It will be noticed that John Doe had, at the beginning of business, a good working capital, $315 worth of wheat, a demand note of $163.25, and a note of $376. His bills payable amount to $107, but when these are liqui- dated he will have $268 cash and $854.25 of quickly available products and bills receivable. In a city of twelve thousand inhabitants it was found that about nine-tenths of the chief busi- ness enterprises were conducted in rented quar- ters. Why may not the farmer find relief from annoying floating indebtedness by renting the plant (farm) , thereby securing an abundant work- ing capital which gives opportunity to buy at the lowest cash price and to sell when prices have advanced? The unwise man in haste to get rich would have paid out the larger part of his working capital on the mortgage to save a 16 The Farmer's Business Handbook little interest and then have required the trades- men to carry him for a year or more, deceiving himself in the belief that he had really saved his interest and indirectly gotten it out of the merchants. But the merchant always knows the difference between a cash and a trust customer who pays when he gets ready, and more than makes up the interest in higher prices, or poorer quality of goods. To pay for everything when delivered is to secure sound sleep and often from 10 to 15 per cent saving on purchases. Then, too, a man always walks more erect when his heart beats against a roll of Uncle Sam's I 0 U's, be it ever so small, than when he finds only keys, a pocket-knife and unpaid bills when his hand goes down in his pocket. There are two kinds of dangerous debts: those incurred for improvident living and running expenses of the farm; and debts too large to be justified by the man's business or by his experience and busi- ness ability. "Little boats should keep near shore, Larger ones may venture more." There are ten-acre, forty-acre, one-hundred- acre and five -hundred -acre farmers. The man is always the greatest factor in any enterprise. In many cases the farmer would better not own the land he tills. He might properly adopt Working Capital 17 the practice of most merchants and use all funds as working capital, which may then be turned over more than once a year, leaving the capital- ist, who does not care to carry on general busi- ness, to own and lease the real estate. In many cases it is far better to lease the farm than to own it encumbered with a mortgage approaching its value. If too large a proportion of the funds have been invested in realty, business operations may be seriously crippled. Let us return to the inventory. We must now imagine that a second year has passed, that the wheat carried over has been sold and the new crop also, and that there has been a steady income from small enterprises, such as fruit, eggs, milk or its products. Let us imagine, also, that one or more horses or cows have been bought or sold, calves and colts reared, some of the farm tools worn out or lost, and new ones purchased. Another inventory at the end of the second year will be necessary which may be quite different from those which have preceded. It will not be necessary to go into detailed dis- cussion of this short method of determining the single year's gain or loss. "Is it anybody's business what a body's busi- ness is?" It may not be, but the wife and the older children should know — have a right to know — the result of the family labors. If the 18 The Farmer's Business Handbook business is not prospering they should be ac- quainted with the fact in order to assist in dis- covering the cause or causes of the embarrass- ment. If economies and sacrifices must be made, they are made the easier if the reasons for them are fully understood. The uninformed wife or son may think father is stingy, or even "mean," but when they come to know the facts their relations to each other are not only changed, but they are willing to assist cheerfully in carry- ing the burden. It not infrequently happens that the wife is the best financier in the "company." In some cases, even, the older children first dis- cover the leaks and learn how to stop them. In any case, the wife and children have a right to know whether the business is prospering. They have helped to produce such prosperity and there- fore they have a right to share in the happiness that it brings. The man, the woman and the larger children are all partners in the business, and while the man may be the active business manager the other parties have a moral, if not a legal right, to know, at least once a year, the conditions of the business, the profits or losses and the character of all investments. Therefore, the father is in duty bound to prepare a yearly statement, similar to the above, that the busi- ness of the firm may be thoroughly and intelli- gently discussed before a new year of operations Brawn is Cheap 19 is begun. In the business world this is always done. Can the farmer, whose profits are often small, afford to ignore the wise usages of all mercantile enterprises ? Are the gains as set forth at the end of the year satisfactory? This farmer has provided home employment for himself and family at fair wages, a moderate interest on all his property, including household goods and a fair profit in addition. If he had placed the money, $6,138.25 (less household goods) at interest, gone to town, rented a house, secured work as best he could, and lived out of the grocery, would he have im- proved his condition financially or otherwise ? Most men are mentally lazy ; most men are not physically lazy. Ten men can be secured to cast up banks of earth rapidly and correctly where one man can be secured who can cast up columns of figures rapidly and correctly. In country and city alike muscle is cheap and abundant; trained in- tellect is scarce and dear. Of course, half -trained intellectual workers are so abundant that it is a wonder where they all come from. It is a little depressing to feel, as these lines are being writ- ten, when the mercury is fluctuating around ninety degrees, that not one in ten who reads these lines will make persistent and intelligent effort to find out where he stands financially with the world, or what branch or branches of his business are 20 The Farmer's Business Handbook producing profit, or what activities result in loss. There is one consolation or, rather, one fact, — most men are financially careless ; this robs criti- cism of its personal character. Too little has yet been done in the schools toward giving thor- ough instruction in accounts. True, an attempt to teach "bookkeeping," with its manifold quirks, may be made for one or two terms, but the sub- ject is rarely mastered, is seldom real, and often is not adapted to the age and conditions of the pupil. Matter and method are likely to be rigid and hard. If the pupils were set to keeping accounts with the family receipts and expendi- tures a working knowledge of accounts would be gained, and the parents as well as the pupils would be benefited. Often an attempt is made to teach lads twelve to fifteen years of age all the forms and intricacies of commercial book- keeping, which can be fully mastered only after years of practice in large commercial houses. In all other studies we commence with the simple and proceed slowly to the complex. In book- keeping the lad is often drowned, suffocated in complexities, and if, by chance, he is ever re- suscitated, he has forgotten which is credit and which is debit, or the meaning of bills payable and bills receivable, and, if called on to give a receipt, would word it as the man did in the story, The Casting Up of Profits 21 "I've got the money. Yours truly, Olivek Ditson." Reared as he has been, the farmer is to be pitied, not blamed. Until more rational methods of teaching practical accounts are employed, the majority of the people will live on in the old-fashioned happy-go-lucky way. Happily, there are some young, progressive farmers who have the courage to attempt difficult problems and the desire to discover the profitable and unprofitable branches of their business. They may not have time or opportunity to keep a complete and detailed account of all transac- tions, but are still desirous of learning whence arise the profits and losses. Usually both profits and losses are present. One cow in a herd is producing a profit of twenty cents per day, an- other in the same herd is kept at a loss of ten cents per day. There may be a fair profit in the corn field and a loss in the wheat field. If the farmer can be persuaded that, by the ex- penditure of a little extra mental effort, he can discover these facts, we shall get him interested in the profits and losses of his business enough to adopt at least some method of keeping brief accounts, which, if continued, will lead naturally to keeping the fuller detailed accounts, as outlined in the following chapter. CHAPTER II THE KINDS OF ACCOUNTS The method of determining gain or loss out- lined in Chapter I, while useful, is not full enough to reveal just where the gains or losses are made. The live stock may have been kept at a loss, while the growing of wheat resulted in sat- isfactory gain, or the live stock may have been kept at a profit while the wheat was grown at a loss. If the farmer is disposed to study his busi- ness critically, accounts must be kept somewhat in detail, and these will require some time, care and judgment. He who is willing to guess at the profits or losses of the various subdivisions of his business would better not undertake the keeping of a more detailed account than has already been outlined. But he who wishes to improve his methods and judgment, who wishes to master his business and not let it master him, would do well not simply to read, but to study carefully what follows. The system given on the following pages is known as double -entry (p. 28). To get a clearer idea of the subject it is best to have in mind a few (22) Kinds of Accounts 23 definitions and principles which apply to any kind of accounts, whether farmers' or merchants'. Accounts are condensed records of business transactions. Bookkeeping is the art or practice of writing accounts methodically in books. Kinds of accounts. — There are three kinds of accounts : PROPERTY ACCOUNTS. PERSONAL ACCOUNTS. INCIDENTAL ACCOUNTS. These three kinds are the only ones needed for any business, no matter how large or how com- plicated its transactions. All three are needed in keeping a complete record of farm operations. Property accounts. — Usually a farmer will keep an account with each kind of property. The sim- plest form of a property account is an account with property in money, or a Cash Account. The fol- lowing is an illustration of a farmer's cash account, starting from the inventory given on page 9 : Simple Cash Account Apr. 1 II u " 14 Cash on hand and in bank Received from Reid's note and interest. . Received from apples sold $375 00 378 40 Apr. 3 ii 7 ii 14 5 40 " 16 " 16 " 16 Paid for expense at Rochester Paid for shoeing. . , Paid for 15 bus. seed wheat Paid Peter Brown. Paid for repairing reaper Paid for repairing harness $6 75 8 25 15 00 10 00 4 29 3 68 24 The Farmer's Business Handbook In the illustration, it will be noticed that there are two sides to the account; the left hand or debit side and the right hand or credit side. Note that Whenever the farmer re- ceived money he wrote the amount on the left or debit side. Whenever the farmer paid money he wrote the amount on the right or credit side. If we deduct the cash paid from the cash received, we will have the amount of cash on hand ; and if the amount is not the same as the actual amount of cash we at once know that an error has been made in our account. The difference between the two sides of an account is called the Balance, because it is the amount required to make the two sides equal. At regular intervals the two sides of every account should be added, balanced and a new account opened. Ideally, the cash should be counted at the close of each day's business and the amount on hand entered on the credit side. However, when the transactions are few, the cash account might be balanced weekly. The "balance" should be written in red ink (shown here in heavier type) to show that it does not represent an actual transaction and that it is to be the first entry in the new account on the opposite side. The balanced footings are ruled in red ink (shown here in dotted lines). A bal- anced cash account, with a new account opened, appears as follows: Property Accounts 25 Balanced Cash Account, and a New Account Opened Apr. l u U " 14 Cash on hand and in bank Received from Reid's note and interest. . Received from apples sold $375 00 378 40 5 40 $758 80 Apr. 16 Cash on hand $710 83 Apr. 3 1 7 1 14 ' 16 1 16 1 16 1 16 Paid for expense at Rochester Paid for shoeing Paid for 15 bus. seed wheat Paid Peter Brown. . . Paid for repairing reaper Paid for repairing harness Balance ( Cash on hand $ 6 75 8 25 15 00 10 00 4 29 3 68 710 83 $758 80 Accounts with all other kinds of property, whether wheat, horses or apples, are kept just as the cash account is, and When the farmer buys property he writes the value of the property on the left or debit side. When the farmer sells property he writes the value of the property on the right or credit side. Most kinds of property other than cash are handled with either profit or loss. In order to find the amount of profit or loss the farmer must first, before closing the account, find out the value of the property on hand and add this amount to the credit side of the account, and then balance the account. If the balance appears on the debit side it shows that a profit was made on the transaction; if the balance is on the credit side the transaction ivas a loss. 26 The Farmer's Business Handbook Suppose the farmer is growing wheat and wants to know whether he is making or losing. His account with property in the form of wheat is as follows : Wheat Account (1900 Crop) Aug.30 " 30 Oct. 1 •' 1 Apr 1 tt 1 1 Fitting land . . . Seeds Threshing and hands Hauling to market Rent of land, at $2.50 per acre Use of tools Profit (to balance ac count) Apr. 1 On hand, new inven- tory 1 $15 00, Oct. 1 15 00 21 00 Apr. 1 6 00 18 75 6 00 158 25 $240 00 $80 00 Sold 200 bushels at 80 cents On hand, 100 bushels at 80 cents (This last entry may be transferred to « Farm Products " if desired, in opening a new account. See p. 28.) $100 00 80 00 $240 00 Personal accounts are kept with the men or firms (that is, with persons) with whom the farmer deals. When accurately kept, they show exactly what he owes and what is due him from others. A personal account appears as follows: John Smith Apr. 4 " 25 10 bus. wheat (a) 60 c. To cash $ 6 00 Apr. 12 1 yearling calf 20 00 1 " 30 254 hours, at 12% c. $20 00 31 75 In other words, When the farmer sold John Smith goods or paid him cash, the farmer wrote the amount on the left or debit side of the account , When John Smith worked for the farmer or when the farmer bought goods from him, the farmer wrote the amount ou the credit side, Personal and Contingent Accounts 27 If both sides of this account were added, it it would be seen that the entries on the right or credit side amount to $25.75 more than the entries on the left or debit side. The balance, then, of $25.75 is the amount the farmer owes John Smith. If the debit entries were more than the credit entries it would show that John Smith owed the farmer. Personal accounts should be kept with each person or firm with whom the farmer deals. When the farmer sells his wheat there must be a buyer. There cannot be a sale when no one will buy. When the farmer buys 100 pounds of sugar, the sugar is taken from the merchant's property and added to the farmer's property. When the man and team spend several days fitting land for wheat, the value of the work (man's board and wages, keep of team, wear and tear of team and implements) is taken from the farmer's property in cash or produce and added to his investment in the wheat field. In every trans- action there is some person who receives value and some person who gives value; or value is added to one kind of property and taken from another. Incidental accounts are those that cannot logi- cally be charged to any specific account, either to definite persons or to property. These are ex- plained later (p. 35). 28 The Farmer's Business Handbook WHAT DOUBLE -ENTRY IS The person who receives value, or the property which has value added to it, is a debtor; while the person who gives value, or the property which has value taken from it, is a creditor. It follows that every value exchanged is both a debit and a credit; so, in all accounts, for every amount written on the left or debit side of one account, there must be an equal amount written on the right or credit side of some other account. Double-entry is writing each transaction twice, — on the debit side of one account and on the credit side of another. Suppose a farmer sells 100 bushels wheat to the miller on time ; the entry on his ledger would be : Farm Products - Sept. 10 100 bus. •wheat sold . (See note in "Wheat Account," p. 26.) $80 00 Samuel Pierce, Miller Sept. 10 $80 00 We have learned (page 23) that bookkeeping is the art of making a systematic record of ac- Kinds of Books 29 counts. In order to keep books, different kinds of books are required; that is, there must be books for the different stages or epochs in the account. The principal book used in keeping accounts is the ledger. It is the only book essential in a small business having few transactions. It will usually be found more convenient to have a smaller book of some sort in which to record all trans- actions in the order in which they occur. Once a month, or at any other regular interval, the en- tries may be transferred or " posted ' ' from this to the proper accounts in the ledger. This smaller book is often called a blotter or day book. In- termediate between the blotter and the ledger is the journal, a kind of condensed blotter; but this is not always used, and it is not described in this handbook. The blotter may be of the simplest form, and the work reports need not be expensive. Com- mon sheets of foolscap paper may be easily ruled into as many columns as required, since only a few sheets will be needed each month. A small ledger suitably ruled (see ruling on page 25) should be purchased. SUB -DIVISIONS OF ACCOUNTS We must now decide into how many classes the various operations shall be divided. For 30 The Farmer's Business Handbook instance, the accounts with cattle, swine and chickens are all placed in the former inventory under one generic head — live stock. When we come to wheat or oats, account will not need to be kept with each field but with each crop as a whole. It has been thought best not to carry or open too many accounts at first. Later, when the system has been learned, the live stock ac- count might be divided into three accounts — cat- tle, swine and poultry. At the end of the year they could be closed into one account — live stock. The data would then be at hand for determin- ing the total profits of live stock, as well as the profits of each one of the three classes of animals. Farm accounts should be learned as we learn other things, by beginning with the simple and proceeding gradually toward the more complex. The aim here will be to give only such details as may be necessary to inform the judgment and explain and illustrate the simplest principles of farm accounts. These, however, do not differ, in the main, from the principles embodied in commercial bookkeeping. The price of the farm labor must be established. If the men board themselves the matter is sim- ple, but if they receive a fixed price ($20 per month) and board with the family, the matter becomes more complex. For illustration: Let it be supposed that the estimated value of board Price of Labor 31 is $12.50 per month, which, added to the $20, makes $32.50. The lawful working month in most states is twenty-six days. In the summer the actual hours employed in work each day may average rather more than ten hours when the weather is fair, but in winter the work-day may be less than ten hours. But if account is taken of all these petty differences we shall get into inextricable difficulties, so it is assumed that the work -day is ten hours long. This gives two hundred and sixty hours per month. If the $32.50 be divided by 260, it will show that the price per hour is 12% cents. It would be well to avoid complications by assuming that the cost of board is slightly more or less than indicated above. If the board is assumed to be $11.20 which, added to the wages of $20, gives $31.20 as the cost of the hired hand, and this divided by 260, the number of working hours in a month, we have 12 cents as the cost of an hour's labor. Or, if it be assumed that the month's board is worth $13.80 and the wages $20 per month, the cost would be 13 cents per hour. The month hands often work about one hour before breakfast in caring for the cattle or horses, and yet go to the field at seven o'clock, and may make full ten hours' time in the field. If the field be charged ten hours and the stock one hour, it 52 The Farmer's Business Handbook destroys the symmetry and harmony of the ac- counts. In practice, it is usually best to charge the wheat field, for instance, with ten hours and temporarily ignore the other hours. There will be many fractions of days when it will be diffi- cult to find any legitimate account to which to charge these fractions of days or hours. All farmers know how showers may break up the operations of the day. The workmen come to the barn and wait to see whether they may not go back to the field. The rain continues, and after a time they are set to "tinkering," or, in the ab- sence of the manager, may take the opportunity to ease off the day's labor by pitching quoits; and no one blames men who work from "sun to sun" for doing so. These fractions of days of lost time or half- lost time of the month hands, may be charged to teams or to live stock, as one's judgment may indicate. Then, too, there is al- ways some Sunday work. This had better not be kept account of, or the problem will become still more difficult. Or, call each work-day ten hours, but charge a just proportion of it to stock or teams, and to hay or wheat field, as the facts warrant. To illustrate : a man who milks morning and even- ing and works in the field the greater part of the day might have one and a half hours of his time charged to stock and eight and a half hours Price of Teams 33 to hay or wheat field, as the case may be. He might have put in more than ten hours, but the proportion of time devoted to stock and to the field would be equitable. We are of the opinion that if a farm-hand works faithfully ten hours daily the year through, no more should be required of him. I notice that men who work but eight hours per day work much faster and lose fewer odd minutes than those who are kept at it twelve to fourteen hours daily. In the end, it is economy to demand only as many hours of men or teams as will enable them to begin work each morning fresh and vig- orous, and not with lassitude and pain due to the continuous strain of working too many hours daily. In like manner, the value of a team per day or hour should be established. It may usually be put down at 15 cents per hour. When but one horse is used, half time is recorded. In the above is included the expense of team and har- ness, but not of the use of plow, wagon, or other tools required to make the team useful. These will be spoken of later. All accounts should be set down at the end of each day. A boy or girl twelve years of age can do this work, and be the better for it, if the father or foreman dictate the transactions. The work reports (or time books) and blotters should 34 The Farmer's Business Handbook be posted early in each month succeeding the one in which the transactions occur. A work report should always be kept for recording the labor of the proprietor or manager, with suitable price affixed, and each team should have its separate work report. These reports are likely to reveal the astonishing fact that while the man works three hundred days in the year the horses work but one hundred to two hundred days, being "deadheads" the remainder of the time. This, in turn, may lead to finding some profitable work for teams during the winter, or to trading horses until most of the work stock is composed of good brood mares, which may be utilized in rais- ing winter colts when otherwise they would be unproductive. The work reports provide for thirty- one days in a month. Before recording any accounts on them, draw a line through the dates on which the Sundays occur, to avoid errors. In 1900, the first day of April was Sunday, hence the 8th, 15th, 22d and 29th were Sundays. (Pages 34, 35.) "When a workman is absent for a part or all of a day it should be noted by the letter "a"; otherwise it may not be certainly known whether the lack of recorded hours is due to careless accounting or to absence. Attention may also be called to the fact that in winter -wheat dis- tricts, two accounts with wheat field may be Contingent Accounts 35 running at the same time, as harvesting may be going on in the 1900 wheat field in July, while the ground for the 1901 wheat field is being prepared in the same or the following months. Then, too, when the teams are working for them- selves, as they may do in rare cases, it is well to charge up the time to them, that the total earnings of the teams for the year may be known. It may be well, in beginning to keep accounts, to imagine that the proprietor parts with his property, giving it over to Mr. Teams, Mr. Corn Field, etc. ; that is, he has personified all accounts, thinks of them as individuals, and thinks of him- self as an accountant until the end of the year, when he will settle with the various persons — personified accounts — and see which have made a profit and which a loss. Incidental accounts (pp. 35-38). Under this name are included many indefinite running ex- penses (p. 27). Such accounts seldom have any natural credits, and therefore are sometimes treated as single- entry or memorandum accounts. However, a double -entry system may be made by making Cash, or some other account, the other side of the entry. Bear in mind that incidental accounts represent a general class of accounts. Amongst these accounts may be a Contingent Account, Farm Household, Personal Expense, and other accounts. 36 The Farmer's Business Handbook It has seemed best not to open a detailed ac- count with Farm Household here, as it would in- volve cumbersome details, and little would be gained; since the forms and methods of keeping it would be similar to those of teams, stock, and the other accounts which start out with an in- ventory charge. However, if it is thought best to open such an account, the value of the board of the proprietor, if he works on the farm, and of such workmen as board in the family, should be credited to Farm Household. On the other hand, all expenses should be debited to Farm Household or to Personal Expense account. But in such a system we should be met with a mass of petty details. The entries would be many: goods for the home, board of guests, charities, traveling expenses for pleasure or health, cloth- ing bill, etc. If no detailed account is kept with Farm House- hold, there may still be an account kept with Per- sonal Expense, in which may be entered all expenses incurred for the last three of the objects named above. Often butter or eggs will be exchanged for groceries. If the farmer wants to know exactly the profit made from the dairy or from the poultry, these items must be credited to live stock or to the dairy, as the case may be; and since there is both a debtor and a creditor in every transaction, there must be some account kept with the debtor Contingent Accounts 37 in these transactions, which is Farm Household. The Personal Expense may include a great num- ber of items, and it requires less detail than a full account with Farm Household. In the methods outlined, those accounts which belong to the business as a whole but which can not well be charged to wheat field or any other special account, have been charged to a Contingent Account. Since the Contin- gent Account seldom or never has a credit, the apparent loss will, in reality, be deducted from gross gains. The same will be true, to a certain degree, of expenses incurred in the house- hold, since they will nearly all be debtor charges unless credits appear by reason of workmen boarded in the family. Contingent Account must be carefully distinguished from Personal Expense. We shall meet with some slight difficulty, in practice, when an account with Farm Household is not kept ; but the busy farmer may meet with many more if he tries to keep such an account. For instance, in the eggs and butter traded at the store for sugar or coffee, it is evident that the value of the former must be credited to live stock ; but if there is no account with Farm House- hold, which uses the groceries, there can be no debit side to the entry. Since there cannot be a credit without a debit nor a debit without a credit, we can overcome the difficulty by ignoring the 38 The Farmer's Business Handbook debits entirely and using what is really a single- entry system. But the professional bookkeeper will immediately answer that this is not a correct method of keeping books. This is granted, and it emphasizes the desirability of keeping an ac- count with Farm Household. It may be said that the farmer really has no cash drawer : he cannot count up cash every night to see whether any mistakes have been made in making change or from any other cause. What he can do is to count cash at the end of the year and to add inventories of all values, as teams, stock, etc., and thus determine his present worth. That, compared with the worth of all his property at the beginning of the year, will indicate correctly the total losses or profits of the year, and the detailed accounts with wheat field, stock and the like, will give a close approximation to the gains or losses of the various minor undertakings. WORK REPORTS, OR TIME BOOKS The following work reports are, in the main, self-explanatory. It should be said, however, that they are adapted to double -entry bookkeep- ing, and it will be well for the student to grasp that fact in the beginning. When the items in the report are entered in the ledger, teams, hay field, contingent, and the like, will be debited To Minimize the Error 39 with the various amounts set opposite to them and in due proportion as they have received values from the labor of Mr. Brown. On the other hand, Mr. Brown has parted with value — labor — equal to the sum total of all the various debts, $32.50 — and, therefore should be credited by this amount. Double -entry is used in all of the accounts, that errors may be minimized. If er- rors are made, double -entry assists in discovering them. Consider the first work report for illustra- tion. If the column headed "hours" does not add up 260, in this particular case, attention is called to the fact that the man has lost time or that the hours have not been set down or added correctly, or that an error has been made in adding up the column. If a mistake is made in multiplying the various numbers of hours by 12%, the price per hour, then the sum total in the last column will not be $32.50. To prove the sum total, simply multiply 260, the total number of hours, by 12%. Prove each work report as above before the various accounts are posted to the ledger. If the total number of hours be an odd number, as is the case in the account with Hay Field and Orchard, the half- cent is dropped in one case and added in the other, or Hay Field is charged with $4.12 and Orchard with 63 cents. This treatment will eliminate half- cents when the accounts are posted to the ledger. 40 The Farmer's Business Handbook CM *% SSS © o © o w m © * *«N00ONOOinO +8 +2 + co + - H* • •a r* « "3 o $0 45 5 70 75 1 05 2 25 3 15 2 25 13 50 3 00 © r-l - a, o 09 O m °3 eoooiot-m-Hiooo as t-i cm i-* 9 im CM m 1 3 ° 1 m 1 © + §} 1 8 1 • o r» 1 © • O | c* 1 O • in 1 c« 1 © • S 1 ;m e! 3 1 « + S 1 e» 1 as . « ° 1 c* 1 2 1 © • CO | © • *"* 1 © • 10 1 © • +2 1 ** 1 © • m | © • ej | o ^ 1 r"t as HIS O 1 O Ol | © + 00 | K 1 * IO | Hin« : in | mm «■ | o • *-4 m | • 3 cw | NO) +- 1 • No. 2 E 2 8 Eh 2 B p ex a e o 8 > e 0 * BE a R c c m £ > E J 2 "3 « i, A s ry. « OS 0 Work Reports 41 o ©??© © eeoo 8 33 L-5 - i- ~ 111 6 OAC4C4NO »t-IOHH CM co •* :-*e» 8 10 es +S 8 o O c; c; X ; •.■: n n a S : +s c* • o o Oi o w © t~ © o C5«OCN +s V o CO o e* o s o e iaia o» o + » t» 3 - * c c 3 1 | c c 1 * j • 1 *3 o ©ww CM t-T» 3- © © § C» ** *S s LO 55 -a OO^CM ■* S co cs :■* o co ; am +3 00 es o © 8 © a © a s a © ; +s e« •© © © 01 © CO © r* 3 - | > fc£ i«ioonoo< S3' icinNion *n*»ia.-nso« C-CN iH CM i-c TC 03 + 2 ■ s« .' '^ M '• '■ * *» •n-l fi"S "O S * 2« .g « ^ o !s £ CHAPTER in THE BLOTTER The sample blotter that follows contains many more entries than would be necessary on an ordi- nary farm in a single month. Most of them are necossary here, however, as examples of the varied transactions that occur in practice. In other words, the year has been compressed into a sin- gle month, but this fact need not mislead. In practice, many more work -report entries and a few other blotter entries would be necessary if the entire year's transactions were recorded. In teaching farm accounts to students, the difficulties have appeared to arise from a lack of reasoning power. Too often pupils start with the idea that farm accounts are to be mastered in the same way that a lad masters the spelling book. The effort is made here to enable them not only to master the text but to appre- ciate the fact that there can not be a debit with- out a credit, nor a credit without a debit. Most people take account of one side of a transaction, sometimes the credit, sometimes the debit, but seldom consider both at the same time. Any (42) Debit and Credit 43 person or account which receives value is a debtor, and any person or account which has parted with value is a creditor. The beginner would better think of the debtor side first and record this side of the transaction first, on the left-hand page, if there are two pages — one page for debtor and one for creditor — or on the left-hand side of the single page, as shown in the blotter here. In mak- ing entries, let the writing be upright and com- pact, and above all distinguish sharply between the figures 3 and 5, 7 and 9, and 6 and 0. In fact, make all figures so plain that "he who runs may read" them correctly. If the college student has some difficulty in comprehending all of the various transactions, with the instructor at hand to explain, it will readily be seen that the student without a teacher will have more difficulty. This being so, he will be wise who takes up each one of these entries in detail and imagines the transaction which must have oc- curred to give rise to the entry. For illustration, let the fourth entry be taken (p. 47) . Mr. LaPoint shod the horses and was paid in cash. Teams received value and Cash parted with value; therefore, the former is debited be- cause value was received, and the latter credited because value was given. If the transaction is looked at carelessly it may be thought that La Point should be credited, but the only object in 44 The Farmer's Business Handbook introducing his name is to indicate who shod the horses, which fact may some time be of value. An explanatory word at the end of an entry is often valuable, but should not be confounded with the principals in the transaction. The Cash Account sometimes confuses the be- ginner. If Cash is personified, or the money is thought of as all being kept in one drawer, the cash account may be the better understood. If the money is put in the cash drawer, the drawer (Cash) is debited, since it receives value ; if money is taken out of the drawer then the drawer (Cash) receives credit, since it parts with value. At the end of the year all open book accounts should be balanced (although the debit and credit balances may not be paid at the time) , for this is the only way of determining how much is receiv- able and how much payable on book accounts. For convenience, the farmer may open an ac- count with Bills Payable, and under it record, either during the year or at the end of the year, all bills, notes and interest accrued to date, closed book accounts and other evidences of his indebted- ness (except the mortgage on the farm, if there be one) on the debit side. He may also open an account with Bills Re- ceivable. Under this head he records, on the credit side, promissory notes and accrued interest thereon, bills receivable and amounts on the Bills Payable and Receivable 45 closed book accounts due him and other evidences of moneys uncollected. If he holds a mortgage on his neighbor's farm, this may be placed with his assets at the beginning of the year. This, to be sure, is not the usual way of keep- ing track of these accounts; but when accounts are not extended and there is no trained book- keeper, we may strain the ordinary rules of accounting and carry several kinds of similar accounts under these two heads of Bills Receiv- able and Bills Payable : one implies an account of the amounts we owe, and the other an account of the amounts which others owe us. Simplicity and ease of reference will be greatly aided if the amounts of all our debts, except the mort- gage, be thus gathered together under one head, and all amounts due us, except the mortgage, be gathered under another coordinate single head. However, when the business is large and compli- cated it is necessary to open a greater number of accounts for these items, one with notes, another with interest, and others with the different persons. The word "to" follows debtor and the word "by" credit: thus, Peter Brown debtor to; Or- chard credit by. Usually the words are not repeated, since the name or account standing at the left is debtor and the account standing at the right of the page is creditor. It is believed that these explanations will clear 46 The Farmer's Business Handbook up some of the perplexities which are so often encountered by the pupil when accounts are con- sidered, provided, however, that the explanations are studied carefully. If they are not, additional explanations would be useless. Some of these explanations apply to the ledger, which has not yet been reached; but it has seemed best to make them here, otherwise some of the entries in the blotter would not be under- stood. As each entry in the blotter is made, the pupil should have clearly in mind the na- ture of the transaction. Consider, for instance, the transaction near bottom of page 48. Live Stock is debtor; Corn Field creditor. The corn and stalks have both been charged to Live Stock, because it is presupposed that the cattle will use these products. Corn Field is credited because it furnished value. Should there be some corn left over when the inventory is made out the next spring, it would be inventoried with other assets of live stock belongings. Should fifty bushels of the corn be wanted for teams before the fiscal year closed, then the following entry would ap- pear in the blotter: Teams Dr. to Live Stock, 50 bushels of corn $25 00 Whenever one account receives value from any other account, a similar entry should be made. Sample Blotter 47 BLOTTER — 1902 Dr. April 2 Cr. Peter Brown Orchard 6 bushels apples, at 50 cents. ... $3 00 April 3 Contingent Cash Expenses at Rochester 6 75 April 4 John Smith Farm Products 10 bushels wheat, at 60 cents 6 00 April 7 Teams Cash Shoeing bill (at LaPoint's) .... 8 25 April 10 Improvements John Bryant Building 40 rods fence, at 12% cents 5 00 April 12 John Bryant Farm Products 60 bushels wheat, at 70 cents 42 00 Live Stock J. Smith 1 yearling calf 20 00 April 14 John Bryant Teams Gray horse Jim 60 00 Cash Bills Receivable Note of John Rice paid 376 00 Interest* 2 40 $378 40 •See explanation under "Bills Receivable," p. 45. 48 The Farmer's Business Handbook Cash Orchard 13/£ bushels apples, at 40 cents (John Rice) $5 40 1900 Wheat Field Cash 15 bushels seed wheat, at $1 per bushel 15 00 John Bryant Orchard 14 bushels apples, at 20 cts 2 80 April 16 Peter Brown Cash Cash 10 00 Tools Cash Repairs on reaper (by Martins) 4 29 Teams Cash Paid Wall & Co., repair har- ness • 3 68 April 20 Improvements John Bryant Building 30 rods fence, at 15 cents . 4 50 Live Stock Corn field 100 bushels corn, at 50 cents 50 00 5 tons stalks, at $3 15 00 $65 00 Cash Live Stock Received for milk $42 36 Teams Hay Field 5 tons hay, at $8 40 00 Sample Blotter 49 Live Stock 4 tons clover hay, at $7. Cash 2 colts (sold to Bush) . . . April 25 Hay Field Bills Payable Grocery bill paid (Henry Bell) Store bill, paid (C. Bessey) Cash Bay horse (sold to Jones) John Smith Cash Teams Cash Teams Cash 28 00 96 00 . 31 00 . 76 00 $107 00 $160 00 20 00 1900 Wheat Field Threshing bill, 300 bushels wheat, at 5 cents Paid John Buck, two days' threshing Paid Buck, use of team Cash Received for eggs April 27 Cash Teams 5 tons hay, at Teams 100 bushels oats, at 30 cts. Live Stock Hay Field Oat Field Cash 310 bushels wheat, at 75 cents . Farm Products 15 00 4 00 2 00 $21 00 $21 50 40 00 30 00 232 50 50 The Farmer's Business Handbook Cash 1900 Wheat Field 300 bushels wheat, at 80 cents . $240 00 Cash Bills Receivable John Burroughs, paid note 163 25 Tools Cash Paint and repair of carriage, B.Rich 2100 Repair of harrow and plow 8 00 $29 00 Improvements John Bryant Cutting 10 cords of wood, at 75 cents $7 50 Cash Improvements 10 cords of wood, at $3 per cord, sold to J. Bent 30 00 John Doe Cash Cash 33 75 1901 Wheat Field Cash Six days, man and team, P. Handy, $2.50 a day 15 00 Orchard Cash Two days' picking fruit, D. Hill 3 00 Peter Brown Orchard 2 bushels peaches 2 00 % bushel cherries 50 $2 50 Sample Blotter 51 1901 Wheat Field 30 bushels seed wheat, at 80 cts. Teams Span of 3-year-old fillies . . Farm Products* Peter Brown Cash Cash 96 barrels apples, at $1.25 . Cash 60 bushels corn, at 40 cents. Cash 200 quarts cream, at 35 cts. . 1900 Wheat Field Use of tools 1901 Wheat Field Use of tools Teams Use of tools . • • Oat Field U86 Of tOOls - . Corn Field Use of tools Live Stock Use of tools . . . Hay Field Use of tools . . . Cash Cash Orchard Corn Field Live Stock Tools Tools Tools Tools Tools Tools Tools $24 00 275 00 17 00 120 00 24 00 70 00 10 00 6 00 12 00 8 00 7 00 2 79 6 00 *When the inventory is taken, all products, such as wheat, hay and oats, are charged to "farm products" account. Oats, hay, and the like, which have already been charged to teams or live stock, are excepted. If any is left over at the end of the year it should be inventoried with teams or live stock, as the case may be. 52 The Farmer's Business Handbook The last seven credits to Tools cannot be entered until all other entries have been made and the inventory at the end of the year has been taken. Turn to page 62 and note that the sum of all debit charges against Tools amounts to $447.79, and on pages 12 and 63 the second inventory amounts to $396. This leaves a deficit or appar- ent loss of $51.79. It is evident that the tool account, which is simply one of convenience, should show neither profit nor loss. Since several of the other ac- counts or divisions have received benefit in the use of tools, they should be charged such amounts for their use as appears to be just. This deficit, $51.79, should be distributed equitably among the accounts using the tools. Here good judgment must be used. Since the teams, in order to be efficient, must use wagons and other expensive tools, $12 has been charged to them. In like manner other accounts have been charged with respective sums, the total of which just equals the $51.79, which makes the debit and credit sides exactly balance, as they should. The work reports, the blotter and inventories will all have been posted before this distribution of the tool account can be made. When it is made and entered in the blotter and posted to the ledger, the ledger is ready to be closed. CHAPTER IV THE LEDGER Having made the original entries in the work reports and blotter, in double-entry form, the ledger accounts may now be opened. As in Chapter I, the first step in starting a farm account is the taking of an inventory in detail of the personal property, as found on page 9. Since one detailed inventory has already been given, it will be necessary only to give a summary similar to the one found on a preceding page. Note, however, that household account is left out in the following examples, since if details were entered into it would greatly increase the number of items and tend to confuse the productive with the personal and non-productive accounts. Summary of Inventory Taken May 1, 1900 (see p. 23) Teams $628 00 Live stock 492 00 Farm tools 408 50 Farm products 315 00 Bills receivable 539 25 Cash on hand 375 00 $2,757 75 Bills payable $107 00 Net assets 2,650 75 $2,757 75 (53) 54 The Farmer's Business Handbook The natural order of all accounts which have inventories will be indicated by the inventory. The value of teams is found to be $628 at the beginning of the year. An account is now opened with Teams, the debits on the left-hand page and the credits on the right-hand page. The first entry is the debit charge against Teams, — of their inventory value. In like manner a debit and credit account is opened with Live Stock, Farm Tools, Farm Products, Bills Receivable, Cash, and with the Farmer to show his net assets. Farm Household, it should be remembered, has been left out in this case in order to prevent too great complication. (See page 35.) At least once each year all running accounts should be settled and a due bill or note given for the balance. These entries from the inventory are called the "opening entries." The farmer's ledger after the opening entries are made appears as follows : May 1 Teams Value as shown by inventory $628 00 May 1 Live Stock Value as shown by inventory $492 00 Ledger Forms Farm Tools 55 May 1 Value as per inven- tory $408 50 Farm Products May 1 On band as shown by inventory $315 00 Bills Receivable May 1 " 1 James Burroughs on demand John Rice, 2 months 6 per cent $163 25 376 00 Cash May 1 Amount on hand and in bank $375 00 Bills Payable May 1 Due C. Bessey on closed store bill. .. Due Henry Bell on closed grocery bill $76 00 31 00 A complete ledger should show that the sum of all the entries on the debit side is equal to 56 The Farmer's Business Handbook the sum of all the entries on the credit side, and this is continually so (if no error has been made) , no matter how great the number of entries. This enables one to prove the correctness of his work at any time, and it will be spoken of later when we come to the " Trial Balance." The last charges in all accounts having inven- tories will be credits "by inventory," these being the respective values of the teams, tools, etc., having inventories at the end of the year. Note, also, that when the total value of all assets is found at the end of the year the amount of debts (bills payable) must be deducted, as at the beginning of the year. It is evident that the difference between the net assets at the beginning and the end of the year will show the total profit or loss. If the value of the net assets at the close of the year be greater than at the begin- ning, the difference will be profit; if less, there will be a loss. Following is the final balance: Farmer (Net Assets) Mayl 1900 Value of property over all debts. . . . [ Balance from foot- ings of previous accounts.] $2,650 75 These ledger accounts may be kept on one page, ruled as the above accounts are, or on two opposite pages as illustrated further on (page 60 and advance). The Net Worth 57 After the inventories have been entered in the ledger, posting the accounts from the work re- ports and blotter should proceed systematically and with a view to minimizing the chances of mistakes. First enter into the ledger (from the work reports) all of the debit charges, checking off each item as entered, thus 1/, or thus //. Then enter the credit side of the account and check in like manner. In the work reports it is evident that the teams and men are to be credited, since they parted with value, and the various accounts which have received value deb- ited. In like manner post from the blotter. In the ledger, as the accounts are posted, note by letters or page of blotter from whence the accounts have been posted, that the original en- tries may be found quickly if desired. If the item comes from the work reports, which will probably not be paged, letters would better be used. Apr. W. T. means that the item was posted from April work report of teams. Fig- ures or letters may be used to indicate the items posted from the blotter, as B 6 indicates that the item came from blotter page 6, or B Apr. 6 would show that the original charge was made in the blotter under date of April 6. These methods of indicating the source of the entries are only suggestive, as any other method may be adopted which will surely indicate in the 38 The Farmer's Business Handbook ledger the place where the original entry may be found. The accountant should get a clear conception of debtor and creditor and of double -entry accounts before opening a set of books. If any account is debited, — for instance, Peter Brown (see first charge in blotter, p. 47), with $3, — some other account or accounts must be credited with a like amount. In this case it is Orchard. Or, consider the first work report, Peter Brown's. Ten accounts have been debited with various sums, the total amount of which is $32.50. Peter Brown has been credited with this amount for labor, so it is evident that the total debit charges should be equal to the total credit charges. On April 2 apples were sold to Peter Brown; and on April 14 apples were also sold to John Rice (p. 48), but he is not debited with them because he paid for them. In this instance Cash received value and is, therefore, debited; Orchard parted with value in both cases and therefore re- ceived credit in both cases. On the 14th a horse was purchased (p. 47), and was turned over to Teams' account and will find a place in the inventory at the end of the year. On the 25th two colts were sold for cash (p. 49) . Cash must then be debited and Teams credited, since Teams parted with value. On the 12th a calf was purchased (p. 47). This is debited to Explanation of Ledger 59 Live Stock, because the accounts of all of the live stock, except horses, are kept under the head of Stock or Live Stock. The live stock account might in practice be subdivided into cattle, swine, sheep and poultry, as the numbers and impor- tance of each should justify. Soon after harvest the hay and grain expected to be consumed on the farm should be charged to the class of stock which is expected to con- sume it, and that whieh is expected to be sold charged up to farm products, while the various fields or crops would receive credit. For instance, if a part of the hay, which had been charged to Farm Products, was needed later for teams or stock, such amounts as were used should be charged to them and Farm Products credited with the same amounts. Observe that all the entries in the ledger have been posted from either the blotter or the work reports, and that the object in doing so is to get all the debit and credit charges of each ac- count together in order that the condition of the account may be seen at a glance. True, if the blotter and work reports were left unposted there would be a record of all transactions, but they would be so scattered that they would be of little practical value. Further instructions on balancing the ledger will be found on pp. 72-75. 60 The Farmer's Business Handbook 1900 THE LEDGER: THE OPPOSITE PAGES Cash Dr. To inventory cash on hand 1900 To cash from John Rice B 1 . . " for apples B 1.. " " milk B 2.. " " colts B2.. " " horse B2.. " " eggs B3.. •' " wheat, farm products... B 3.. " " " 1900 B3.. " " Burroughs' note paid . . .B 3. . " " 10 cords wood B3.. " " 96 bbls. apples B4.. " " 60bus.com B4.. •' " 200 qts. cream B4.. Bills Payable $375 00 To cash paid C. Bessey, due bill B 2. . To cash paid Henry Bell, due bill ...B 2.. $107 00 1900 Bills Receivable Dr. To inventory— $376 00 163 25 $539 25 2 40 $541 65 1900 Contingent Dr. May To 12 hours' labor (a) \V/i cents W 1 . . " 24 " " 15 " ....W5.. " 5 " " 15 " ...,W2.. $1 50 3 60 75 6 75 $12 60 Note.— Dotted lines and heavy-face figures are to indicate red ink; in par- entheses are given the new accounts to which the red ink entries go. These new accounts may be continued on the same page or transferred to another book. Ledger 61 SHOW THE TWO SIDES OF THE ACCOUNT 1900 Cash Cr. 1901 By cash farm products B 1 . . " " shoeing bill Bl.. " " seed wheat B4.. " " Peter Brown B2.. " " repairs B2.. " " harness B2.. " " bills of Bell & Bessey B2.. " " J.Smith B2.. " " threshing bills B3.. " " repairs B3.. " " John Doe B3.. «' " P. Handy, labor B4.. " " D.Hill B4.. " " span fillies B4.. " " Peter Brown B4.. To balance cash on hand (to 1901 Cash acct. ) $6 75 8 25 15 00 10 00 4 29 3 68 107 00 20 00 21 00 29 00 33 75 15 00 3 00 275 00 17 00 1900 Bills Payable Cr. $568 72 1,389 69 $1,958 41 Due bill (or note) given in settlement of C. Bessey's store bill Due bill (or note) Henry Bell's grocery bill 1900 Bills Beceivable Cr. $107 00 By Rice note paid B 1 . . " interest on same " Burroughs' note paid B 3 . . 1900 Contingent Cr. $541 65 By balance (to Gain and Loss) $12 60 62 The Farmer's Business Handbook 1900 THE LEDGER: THE OPPOSITE PAGES Teams Dr. inventory. 4 hours' labor (a) 12% cents W 1. 4 " " 15 " W5. 3 •■ " 15 " W2. cash B 1 . " repairs to harness B2. hay B 2 . " B3 . oats B 3 . span of fillies B 4 . tools B 5 . To balance (to Gain and Loss) $0 50 60 45 8 25 3 68 40 00 40 00 30 00 275 00 12 00 $628 00 410 48 $1,038 48 153 22 $1,191 70 Farm Tools Dr. To inventory. To 6 hours' labor (a) 12% cents W " 6 " " 12% " ....W " 18 " " 12% " ....W " 18 •« " 12% " ....W " repairs, cash B2 " B3 $408 50 39 29 $447 79 1900 Farm Products Dr. $315 00 $315 00 Ledger 63 SHOW THE TWO SIDES OF THE ACCOUNT 1900 Teams Cr. 1901 By 214 hours' labor (a) 15 cents.... W 2. " 224 •« " 15 •« ....W4. •' 1 colt B 1 . " 2 colts B 2 . " 1 horse B 2 . By inventory (to 1901 Teams account) $32 10 33 60 60 00 96 00 160 00 $381 70 810 00 $1,191 70 1900 Farm Tools Cr. By use of tools J900 W. F Bo.. " " " 1901 " B5.. $10 00 6 00 12 00 8 00 7 00 2 79 6 00 " " " O. F Bo.. " " " C. F B5.. " " » L. S B 5.. " " « H. F B 5.. By inventory (to 1901 Farm Tools account) $51 79 396 00 1901 $447 79 1900 Farm Products Cr. " " Bl.. $6 00 42 00 24 00 232 50 " " Bl.. " " B3.. $304 50 10 SO $315 00 64 The Farmer's Business Handbook 1900 THE LEDGER: THE OPPOSITE PAGES Live Stock Dr. To inventory To 8 hours' labor (a) 12% cents W 1. " 12 " " 12% " ....W3. " 8 " " 15 " ....W5. " 7 " " 15 " ....W2. " 1 calf B 1 . " corn and stalks B 2 . " hay B2. " tools B 5 . To balance (Gain and Loss acct.). Inventory*. $570 00 $492 00 $1 00 1 50 1 20 1 05 20 00 65 00 28 00 2 79 $120 54 91 32 $703 86 — Hay Field To 33 hours' labor (a) 12% cents W 1.. •« 69 " " 12% " ....W3.. " 73 " " 15 " ....W5.. " 38 " " 15 " „..W2.. " 29 " " 15 " ....W4.. " tools B5.. To balance (to Gain and Loss) 1900 Corn Field Dr. May To 52 hours' labor (a) 12% cents.. " 23 " " 15 '• .. •• 21 " " 15 " .. ..W 1.. ..W5.. ..W2.. ..R5.. $6 50 3 45 3 15 7 00 $20 10 68 90 $89 00 * This shows how the new (1901) Lire Stock account is opened. Ledger 65 SHOW THE TWO SIDES OF THE ACCOUNT 1900 Live Stock Cr. By milk B 2 " cash for eggs B 3 ii <» (i cream B4 Inventory (to 1901 Live Stock account).. 1900 Hay Field Cr. By hay (timothy) B 2.. " "(clover) B2.. " " B3.. $40 00 28 00 40 00 $108 00 Corn Field Cr. B2.. $65 00 24 00 $89 00 66 The Farmer's Business Handbook 1900 THE LEDGER: THE OPPOSITE PAGES Improvements Dr. To 10 hours' labor (a) 12% cents W 1 " 16 " " 15 " ...,W5 " 15 " " 15 " ....W2 " fence building B 1 " " " B2 " cutting wood (Bryant) B3 To balance (to Gain and Loss) 1900 1900 Wheat Field Dr. $22 90 7 10 $30 00 May 1901 To 70 hours' labor (a) 12% cents W 1. •« 80 " " 12% " ....W 3. " 40 " " 15 " W 5. " 90 '• " 15 " ....W2. " 80 " " 15 " ...,W4. " threshing (cash) B3. " seed wheat B 1 . " tools B 5 . To balance (to Gain and Loss) . 1901 Wheat Field $8 75 10 00 6 00 13 50 12 00 21 00 15 00 10 00 Dr. $96 25 143 75 1240 00 To 60 hours' labor (a) 12% cents W 1 " seed wheat B 1 " labor (P. Handy) B 4 " tools B 5 1900 Orchard Dr. May 1 To 5 hours' labor® 12% cents.. " 12 " " 12% " .. " 22 " " 15 " .. " D. Hill (labor) ..Wl.. ..W3.. ..W5.. ..B 4 .. $0 63 1 50 3 30 3 00 $8 43 125 27 $133 70 Ledger 67 SHOW THE TWO SIDES OF THE ACCOUNT 1900 Improvement Cr. By 10 cords wood 83. 1900 1900 Wheat Field Cr. $30 00 $30 00 By wheat sold B 3.. $240 00 $240 00 1901 1901 Wheat Field Cr. May 1 $52 50 $52 50 1900 Orchard Cr. May 1 it ii B 1.. ..B 1.. $3 00 5 40 2 80 2 50 120 00 «' " ..B4.. $133 70 $133 70 68 The Farmer's Business Handbook 1900 THE LEDGER: THE OPPOSITE PAGES Oat Field Dr. 1900 To 75 hours' labor (a) 12% cents W 1. " 20 " " 15 " ....W . «« 115 " " 15 " ....W . " tools B5 . Peter Brown Dr. To apples B 1 . " cash B 2. " fruit B4. " cash B4. 1900 John Doe Dr. To cash B 3. $33 75 Farmer (Net Worth) $37 63 $32 50 1900 John Bryant Dr. B 1.. $42 00 60 00 2 80 " l colt B 1.. $104 80 $104 00 $33 75 1900 John Smith Dr. To wheat B 1 . . $6 00 20 00 To balance (to Bills Receivable) $26 00 25 75 $51 75 Net worth. May. 1901 (to 1901 Farmer's acct.) Ledger SHOW THE TWO SIDES OF THE ACCOUNT 1900 Oat Field Cr. $30 00 $30 00 7 63 $37 63 1900 Peter Brown Cr. By 260 hours' labor (a) 12% cents $32 50 $32 50 $32 50 1900 John Bryant Cr. " " •« B2.. $5 00 4 50 7 50 $17 00 87 80 $104 80 1900 John Doe Cr. $33 75 $33 75 1900 John Smith Cr. By 254 hours' labor (a) 12% cts $31 75 20 00 << 1 calf B 1 . . $51 75 $51 75 1900 Farmer (Net Worth; May 1 Value of assests over liabilities as shown $2,650 75 629 49 Net profit (profit and loss acct. ) Net worth, May, 1901 $3,280 24 $3,280 24 CHAPTER V THE TRIAL BALANCE To determine whether the debits and credits have been correctly posted in the ledger, a " Trial Balance Sheet" is prepared. If the sum of all the debits is equal to that of all the credits, it is good evidence that the books have been correctly posted. Peter Brown, in the blotter, is debited with $3, and, through carelessness, Farm Products, instead of Orchard, might be credited with this $3, but such mistakes seldom occur. This is called M posting to the wrong account," and the Trial Balance will not reveal such error. A Trial Balance results from placing the sum total of all debit charges of all accounts in one column, and all the credit charges of all accounts in a like column. If the sum total of all the debits in the first column equals the sum total of all the credits in the second column, the posting has been correctly done. The balances and the last inventories are. not entered in the ledger until after the Trial Balance is taken. Sometimes the inventory is entered in red ink, in order to attract attention. In this book, the figures (70) A Trial Balance 71 which express the value of the inventories have been placed in bold-face type for the same pur- pose. Below is the trial balance sheet, which em- braces all footings of the debit and credit charges appearing in the ledger which have been posted from the Work Reports and Day Book, and no others. This implies that neither the first nor the second inventories, nor the Balances of whatever description have been set forth in the Trial Bal- ance. The object of taking it is not to determine Gain and Loss or Present Worth, but merely to determine whether the various items which orig- inated in the Day Book and the Work Reports have been accurately posted to the Ledger. If they have been, the debits and credits balance. Trial Balance Dr. Cr. Cash Bills Payable Bills Receivable.. Contingent Teams Farm Tools Farm Products... Live Stock Hay Field Corn Field Improvements 1900 Wheat Field. 1901 Wheat Field. Orchard Oat Field Peter Brown * John Bryant John Doe John Smith 2,747 92 $1,583 41 $568 72 107 00 541 65 12 60 410 48 381 70 39 29 51 79 304 50 120 54 133 86 39 74 108 00 20 10 89 00 22 90 30 00 96 25 240 00 52 50 8 43 133 70 37 63 30 00 32 50 32 50 104 80 17 00 33 75 33 75 26 00 51 75 $2,747 92 72 The Farmer's Business Handbook At the end of the year a new inventory is made. The live stock, teams and farm tools are valued as at first. The cash on hand is also set down. In this case it is taken from the books. Not knowing whether there eventually will be gain or loss in 1901 wheat field, the wheat is valued at cost, or what has been expended upon it, $52.50. Mr. Bryant owes $87.80, and there is $25.75 due Mr. Smith. The former, for the present pur- pose, may be set down under the head of accounts due and the latter under accounts owing, although they are, strictly speaking, accounts with persons. Summary of Inventory taken May 1, 1901 Teams $810 00 Live Stock 570 00 Farm Tools 396 00 Cash 1,389 69 Value of wheat in ground 52 50 Accounts Due (Bryant) 87 80 $3,305 99 Accounts Owing (Smith) 25 75 Net assets $3,280 24 The above summary sets forth in brief the assets and liabilities, and the net assets at the end of the year, which last can be quickly compared with the net assets at the beginning of the fiscal year. In this case, the assets are less at the beginning of the year than at its close ; there- fore the difference is gain: Gains and Losses 73 Net assets May 1, 1901 $3,280 24 Net assets May 1, 1900 2,650 75 Gain $629 49 While this method of determining gain or loss is correct if all property of value is accurately- set forth in the inventories taken at the begin- ning and end of the year, it does not reveal the detailed gains and losses of the various subdi- visions into which the business has been divided. After the inventory is taken, the amount (ex- cept Bills Payable) are entered on the credit side of Teams, Live Stock, Farm Tools, etc., and the accounts are balanced. The inventory value is then carried down to the opposite (debit) side of the new year's account and the "Balance," which shows either profit or loss in a property account, is transferred to a Gain and Loss account. If the balance is on the debit side it shows a profit and is entered on the credit side of the Gain and Loss account; if the balance is on the credit side of the property account it shows a loss and is transferred to the debit side of the Gain and Loss account. A red ink entry always means that the amount so written is to be transferred to the opposite side of some other account. Having credited Teams, Live Stock and Farm Tools, respectively, with the amounts as found in the summary values, balanced the Cash account 74 The Farmer's Business Handbook and credited 1901 Wheat Field with "wheat on the ground," $52.50, and J. Bryant "by balance due," $87.80, and balanced John Smith's account by entering on the debit side of it "to balance un- paid," $25.75, we are ready to close all accounts and determine gain and loss in detail. All of these balances have been placed in bold-faced type, that the student may the better follow, step by step, the various operations necessary to balance and close the books. The accounts are closed by entering either on the debit or credit side, as the case may be, the difference between them. To illustrate, the credit to Teams (p. 62), including both inventory entries, exceeds the debits by $153.22; therefore the fol- lowing entry is made in the ledger, "To balance," $153.22. Note just what the statement means and what it says — that in order to make the debit side of Teams account equal to the credit side $153.22 has been arbitrarily entered. This amount did not come from the work report, nor the blotter, nor from any actual transaction, but was placed there for the single purpose of bal- ancing the account with Teams. In like manner, enter such amounts as may be necessary in the other accounts to make their debits and credits equal, that is, balance. If the balance falls on the debit side it is written, "To balance," if on the credit side? "By balance." These entries are Gains and Losses 75 usually written in red ink, that they may be easily and quickly distinguished from entries which have been posted either from inventories, work reports or blotter. The lines used when the accounts are closed should also be in red ink. Their number and position varies somewhat, but the common form is found in Teams account, the dotted lines being the ones which are usually in red ink. The accounts being balanced and closed, they are now in the proper form for making a detailed statement of gain and loss, and also a statement of total net gain or loss. The gain and loss state- ment will require careful inspection by the stu- dent who is studying farm accounts without a teacher. Wherever an entry "To balance" is found there is profit ; wherever " By balance " there is loss. It will be noticed that, in the cash ac- count, the form is changed, and reads "By cash on hand." This really sets forth the fact that there is enough actual cash on hand • to make the account balance. In the two personal ac- counts, the entries are "To" or "By" amount due to balance. In all three of these cases there is an actual value equal to the difference between the debit and credit sides, therefore these ac- counts do not show either gain or loss. The gain and loss account of the sample ledger appears as follows: 76 Hie Farmer's Business Handbook Gain and Loss Contingent Farm Products Oat Field Net Profit (Farmer's ac- count; $12 60 10 50 7 63 629 49 $660 22 Bills Receivable (int.). Teams Live Stock Hay Field Corn Field Improvements Wheat Field (1900).... Orchard $2 40 153 22 91 32 68 26 68 90 7 10 143 75 125 27 $660 22 The accounts with Teams and Live Stock require only a little explanation. It may be said, however, that the last inventory is supposed to set forth not only the value of the animals on hand, but also a part of the value of some of the food that remains unused, which wTas charged up to these two accounts and credited to Hay Field, Corn Field and Oat Field. It usually transpires that some of the hay or grain which has been charged to Teams or Live Stock is yet on hand when the inventory is taken in the spring, in which case it is inven- toried the same as the animals, and the value of such products is added to the value of the ani- mals. It should be noticed, too, that at the beginning of the year the amount of the inven- tory of teams was entered as a debit charge against them; therefore, the sum total of the values on hand at the close of the year should be credited to teams. All other accounts which have inventories should be treated in like manner. If hay, grain and the like have not been sold Farm Products Account 77 to teams or stock or in the market but are on hand when an inventory is taken, an account is opened with Farm Products, that the ac- count with Hay Field, Oat Field and the like may receive due credit and be closed. The amount of such property on hand is inventoried at the market price at the time the accounting is made. This account of farm products is simply one of convenience. Incidentally it may show whether there has been gain or loss in holding that particular product for a higher price, in this case, wheat. As the products are sold from time to time, Farm Products receives credit and the person or personified account receiving value from farm products is debited. If sold for cash, Cash is debited and Farm Products credited. The wheat held over (see pages 10, 47 (2), 49, 51), as usual, has fallen short in measure. It was inventoried at four hundred and twenty bushels, but had shrunk, when sold, to four hundred and ten, and although some of it was sold at a higher price than was placed upon it in the inventory, there was a loss of $10.50 sustained over what would have been realized had it been sold on the day it was inventoried. If the various cash transactions have all been correct there should be enough cash on hand to balance the account. If mistakes have been 78 The Farmer's Business Handbook made in paying out cash or in receiving it, there would then appear to be either profit or loss. Suppose a two-dollar bill had been paid out for a one -dollar demand. Then the cash account would not balance, but show a loss of one dollar. If the mistake was reversed, then the account would show a gain of one dollar. The debits and credits in the two personal ac- counts, Smith's and Bryant's, do not balance until an explanatory entry is made stating the difference. Since it is presupposed that Mr. Bryant will pay the $87.90, and that we will pay Mr. Smith the $25.75 we owe him, there is neither gain nor loss in these accounts. The Improvement account shows a gain of $7.10. It appears that enough wood has been sold to pay for a few improvements and leave a surplus of this amount. When the wood lot is small it is hardly necessary to open a separate account with it, but the receipts from wood or lumber may be used to reduce the debits which are certain to arise by reason of making ordinary repairs. If the wood lot is large and sales from it considerable, then a separate wood lot account should be kept. So, in like manner, a separate account should be opened if any expensive im- provement is to be made, such as building a barn or house, that ordinary improvements and unusual improvements may be clearly separated The Manure Account 79 and that the cost of the new buildings may be known. Perhaps the most perplexing things to deal with in farm accounts are the straw and the barn manure. Let us try to follow the straw from the time the wheat is threshed until the beneficial fertilizing and mechanical effects of it are exhausted in the field after it has been passed through the stables and converted into manure. Let it be supposed that so much of the straw as is used by the teams is charged to them and credited to Wheat Field. The solid and liquid voidings are incorporated with the straw-bedding, and the resultant manure is more valuable than the straw was before it passed through the sta- bles. Then it would only be just to the Teams account to credit it with something to represent the value of the excrements of the horses. If this is done an account must be opened with Manures, and this account debited and Teams credited with the value of the manure. When the manure is drawn to the field designed for corn, the Manure account must be credited and Corn Field debited with not only the value of the ma- nure, but the cost of hauling it. But it is esti- mated that the first crop after manuring does not use more than one-half of the valuable con- stituents of the manure applied. Then to be just to the corn field it should be credited with one- 80 The Farmer's Business Handbook half of the original value of the manure and one- half of the cost of hauling it. If this is done, some account must be debited with a like amount. Suppose barley follows the corn. Then Barley- Field must be debited with an amount equal to the credit of Corn Field. But there will be an unused residue of the manure after the barley has been harvested, — how much it is impossible to esti- mate. If wheat follows the barley, then, it will receive some benefit from the manure that was put on the corn ground, and even the grass and clover which follow the wheat will be the better because the corn ground was treated with this dressing of manure. Sir J. B. Lawes found that liberal dressings of manure produced beneficial effects for many years after their application. It is evidently impracticable to follow one or a hundred loads of manure through this labyrinth of debit and credit. Quite as accurate data will be secured if no credit is given to Wheat Field for the straw unless it is sold in the market. This would obviate making any debit or credit charges for the straw used on the farm, in which case all of the accounts could be closed at the end of the year and gain and loss approximately deter- mined. We would better leave these changing values to the good judgment of the farmer at the end of the year. The expense of hauling the manure falls most Final Balance 81 naturally under Improvement account. At the end of the year this account will usually show that more has been paid out than has been received, unless there is timber, stone or cord wood to sell. But suppose it is so. After the accounts are closed and gain and loss determined, it will not be difficult for the proprietor to inspect the gain and loss statement, and, being conver- sant with all the facts, he will be able to determine approximately the true amount of gain or loss. When the Trial Balance has been completed and proved, the farmer may cast up his assets and liabilities in the following form: Balance Sheet Assets — Cash $1,389 69 Teams 810 00 Farm Tools 396 00 Live Stock 570 00 1901 Wheat Field 52 50 John Bryant 87 80 $3,305 99 Liabilities — John Smith $25 75 Farmer (Net Worth) 3,280 24 $3,305 99 CHAPTER VI ACCOUNTS WITH PARTICULAR FIELDS AND CROPS Two methods of determining gain or loss have / already been set forth. The one simply attempts to note values of property possessed at the be- ginning and end of the year. The difference in these inventories shows the gross gain or loss, but from them it cannot be determined in what parti- cular undertaking the gain or the loss occurred. The second method, which is more elaborate, sets forth as nearly as farm conditions will per- mit, the gain or loss in each subdivision. A banker may, and not infrequently does, estimate his securities at more than they are worth. That is, he inventories them at face value when they are really at a discount, or entirely valueless. In a similar way, a farmer may inventory a horse at $500 when it really is worth only $150, and will not sell for more than that. It will be seen that in order to determine gain or loss with any degree of accuracy not only must the accounts be kept correctly, but the best of judgment must be exer- cised in valuing the assets at the beginning and (82) A Third Method of Accounting 83 the end of the year. A study of the markets develops judgment as to values. The third method of keeping accounts, described in the following pages, also requires good judg- ment and a clear understanding of values and of the business carried on. In this, as in the former methods, an inventory should be taken both at the beginning and the end of the year. Let it be supposed that there is doubt as to the relative profits of the wheat, oat and corn crops. The previous account shows large profit in raising wheat and loss in raising oats, and this is valua- ble information, but it may not be convenient for every one to keep as detailed accounts as are shown by the second method, Chapters II and III. So a modified method of accounting is presented below. If the first method be adopted there is no means of knowing the relative profits of the different crops or undertakings. This third method is an attempt to combine a part of the two methods already given in a sim- ple and fairly accurate way, the purpose being to discover which of a few particular crops or undertakings give best results. Let it be supposed that it is desirable to learn the cost of producing a bushel of wheat, a bushel of corn and a bushel of oats. First, establish a fair wage for man and team, including use of tools, which will be simpler than to make a 84 The Farmer's Business Handbook separate charge for their use at the end of the transaction. In many cases ten cents for man and fifteen cents for team per hour, including use of tools, •will be approximately correct. Provide a few work reports (time books) , and a few sheets of foolscap paper or a small blank book. At the close of each day, when the men and the teams have been engaged in the wheat, oat or corn fields, note on their respective work reports the actual number of hours devoted to each crop. In the blank book open three accounts, one with each crop, and debit them respectively with seed, commercial fertilizers, threshing bill and any other debit items which are not recorded in the work reports. For manures, see page 79. All of these accounts may be kept in single-entry form. "When the grain is threshed, or the crop is in such form that a price can be placed on the har- vested crop, put a just value on such products and from such value deduct the cost as deter- mined by the sum totals of the entries in the work reports and blotter. If the value of each crop exceeds the debtor charges against it, the difference will represent the value of the use of the land and profits. When the value is sub- tracted from the debtor charges, the profits will be shown. "We may now, also, compare the profits as between the different kinds of crops with which accounts have been kept. Work Report 85 K ir "3 fcH oio (SO S3 ha X) o O ICi 0 o 1 z-3 eo t- rj M 1 co 1 CO 1 fc 1 « 1 o Si SI 31 eSI S 1 Si 21 a | oo J5 1 * : 2 1 >«'=> 2 i : 3 132 S 1 c 5 21 = 1 21 » 1 23 «i : : •>!•**■ « 1 23 •" 1 S3 | *l «s n | kx e« 1 gg •* l '. •a hi - — ■ll ■ on ■ a « • c - cote © i m oo OO t-iO - m c CM o — |— a*r ^3 — t 33 : * 10 = : r- "3 c EH t J: M ft •9 00 O O *- 00 o o fc.3 t>«-l co 1 co 1 SI 00 | « 1 SI 1/1 1 c« 1 m | *• 1 c« 1 e« 1 o c« 1 - 2 1 00 | ** 1 O I - 1 * 1 9 1 e» | 3 1 •*■* e i:o c* x -\ 00 1 ^ |09 «o 1 32 « | tr •a *? n c* 1 *" 1 2 ° : £ - t-t- ■ceo © CO o 00 00 O IS r-io ice» « L-- £ o O S * 00 5 S "3 o EH CMC w ft op 00 O I. fc.a XX en 1 o CO CT. 2 s 8* > < c< -^« ~ C V. X — CO - ci < ci ^ o < 2 CO v. t~ S 2 in •- - * « ■' - CO si z s. c» «c * ;: o o m o> OO X l> o a o IS IS m c — v o o CO c = rt •< 2 "3 S a 1 ■ j IS CO e> CO • DO OC oa i-t o • — ■ o " 2 ! | occs | « ; \ g< g ii 12 " 15 " 18 " 20 " Corn stover, 1 lb.. " 5 lbs. 8 " 12 " 15 " 18 " 20 «« 130 The Farmer's Business Handbook Table II — Continued Total dry matter Lbs. of digestible nutrients Kind and amount of feed Protein Carbohy- drates + (fatX 2.25) Total Nutritive ratio HAY and STRAW— Continued. " " 3 lbs 5 " 8 " " 12 " " " 15 " .86 2.58 4.30 6.88 10.32 12.90 .90 2.70 4.50 7.20 10.80 13.50 .91 2.73 4.55 7.28 10.92 13.65 .95 1.90 2.85 3.80 4.75 6.65 8.55 11.40 .89 1.78 2.67 3.56 4.45 5.34 6.23 7.12 8.01 .043 .129 .215 .344 .516 .645 .004 .012 .020 .032 .048 .060 .012 .036 .060 .096 .144 .180 .036 .072 .108 .144 .180 .252 .324 .432 .079 .158 .237 .316 .395 .474 .553 .632 .711 .341 1.023 1.705 2.728 4.092 5.115 .372 1.016 1.860 2.976 4.064 5.580 .404 1.212 2.020 3.232 4.848 6.060 .397 .794 1.191 1.588 1.985 2.779 3.573 4.764 .764 1.528 2.292 3.056 3.820 4.584 5.348 6.112 6.876 .384 1.152 1.920 3.072 4.608 5.760 .376 1.128 1.880 3.008 4.512 5.640 .416 1.248 2.080 3.328 4.992 6.240 .433 .866 1.299 1.732 2.165 3.031 3.897 5.196 .843 1.686 2.529 3.372 4.215 5.058 5.901 6.744 7.587 1: 7.9 1:93.0 " 3 lbs " 5 " " 8 " 12 " 15 " 1:33.6 «« 3 lbs " 6 " " 8 " » 12 " " 15 " 1:11.0 «• " 2 lbs » " 3 " " << 4 " " «« 5 " «• 7 " •' " 9 " " " 12 " Grain Corn (av.),l lb 1: 9.7 " 2 lbs *' 3 " " 4 " «< 5 " " 6 " " 7 " 8 " •' 9 " Feeding Stuffs Table II — Continued 131 Total dry matter Lbs. of digestible nutrients Kind and amount of feed Protein Carbohy- drates + (fatX 2.25) Total Nutritive ratio GRAIN— Continued. Wheat, 1 lb .90 1.80 2.70 3.60 4.50 5.40 .88 1.76 2.64 3.52 4.40 5.28 .89 1.78 2.67 3.56 4.45 5.34 .89 1.78 2.67 3.56 4.45 5.34 6.23 7.12 8.01 10.68 13.35 .87 1.74 2.61 3.48 4.35 5.22 6.09 6.96 7.83 .102 .204 .306 .408 .510 .612 .099 .198 .297 .396 .495 .594 .087 .174 .261 .348 .435 .522 .092 .184 .276 .368 .460 .552 .644 .736 .828 1.104 1.380 .077 .154 .231 .308 .385 .462 .539 .616 .693 .730 1.460 2.190 2.920 3.650 4.380 .700 1.400 2.100 2.800 3.500 4.200 .692 1.384 2.076 2.768 3.460 4.152 .568 1.136 1.704 2.272 2.840 3.408 3.976 4.544 5.112 6.816 8.520 .533 1.066 1.599 2.132 2.665 3.198 3.731 4.264 4.797 .832 1.664 2.496 3.328 4.160 4.992 .799 1.598 2.397 3.196 3.995 4.794 .779 1.558 2.337 3.116 3.895 4.674 .660 1.320 1.980 2.640 3.300 3.960 4.620 5.280 5.940 7.920 9.900 .610 1.220 1.830 2.440 3.050 3.660 4.270 4.880 5.490 1: 7.2 " 2 lbs " 3 " " 4 " " 5 " «« 6 " Rye, 1 lb 1: 7.1 " 2 lbs » 3 " «< 4 << " 5 *' " 6 " * Barley, 1 lb 1: 7.9 " 2 lbs «« 3 lbs ti 4 << " 5 " " 6 " Oats, 1 lb 1: 6.2 " 2 lbs " 3 " " 4 " " 5 " " 6 " " 7 " " 8 " '« 9 " " 12 " " 15 " Buckwheat, 1 lb 1: 6.9 " 2 lbs •• 3 " it ^ << " 5 " " 6 " " 7 " «' 8 " " 9 " 132 The Farmer's Business Handbook Table II — Continued j Total dry matter Lbs. of digestible nutrients Kind and amount of fee Protein i Carbohy- drates + (fat X Total Nutritive ratio 2.25) GRAIN— Continued. .90 .168 .336 .504 .672 .840 1.008 1.176 1.344 1.512 .534 1.068 1.602 2.136 2.670 3.204 3.738 4.272 4.806 .702 1.404 2.106 2.808 3.510 4.212 4.914 5.616 6.318 1: 3.2 " 2 lbs 1 80 " 3 •' 2.70 " 4 " 3.60 " 5 " 4.50 " 6 " 5.40 7 " 6.30 " 8 " 7.20 9 " 8.10 Mill Products Corn and cob meal, 1 lb 85 .044 .665 .709 1:15.1 2 lb 3... 1.70 .088 1.330 1.418 3 M 2.55 .132 1.995 2.127 4 lbi >... 3.40 .176 2.660 2.836 5 " 4.25 .220 3.325 3.545 6 " 5.10 .264 3.990 4.254 7 " 5.95 .308 4.655 4.963 8 " 6.80 .352 5.320 5.672 9 « 7.65 .396 5.985 6.381 12 " ... 10.20 .528 7.980 8.508 Wheat bran, 1 lb .88 .122 .453 .575 1: 3.7 " " 2 lbs.. 1.76 .244 .906 1.150 " " 3 " . 2.64 .366 1.359 1.725 " " 4 " . 3.52 .488 1.812 2.300 " ti 5 " . 4.40 .610 2.265 2.875 >i <• 6 " . 5.28 .732 2.718 3.450 « 7 <. ... 6.16 .854 3.171 4.025 " 8 " . 7.04 .976 3.624 4.600 ,< « 9 i. . 7.92 1.098 4.077 5.175 Wheat middlings, 1 lb .88 .128 .607 .735 1: 4.7 2 lb> I... 1.76 .256 1.214 1.470 " 3 " ... 2.64 .384 1.821 2.205 4 " 3.52 .512 2.428 2.940 5 " 4.40 .640 3.C35 3.675 u u 6 •< 5.28 .768 3.642 4.410 7 " 6.16 .896 4.249 5.145 8 " 7.04 1.024 4.856 5.880 9 « ... 7.92 1.152 5.463 6.615 Feeding Stuffs Table II — Continued 133 Total dry matter Lbs. of digestible nutrients Kind and amount of feed Protein Carbohy- drates X (fat X Total Nutritive ratio 2.25) MILL PRODUCTS— Continued. Dark feeding flour, 1 lb... .90 .135 .658 .793 1: 4.9 2 lbs.. 1.80 .270 1.316 1.586 3 " .. 2.70 .405 1.974 2.379 4 " .. 3.60 .540 2.632 3.172 5 " .. 4.50 .675 3.290 3.965 6 " .. 5.40 .810 3.948 4.758 7 " .. 6.30 .945 4.606 5.551 8 " .. 7.20 1.080 5.264 6.344 9 " .. 8.10 1.215 5.922 7.137 .88 .082 .647 .729 1: 7.9 2 lbs.... 1.76 .164 1.294 1.458 ' 3 " .... 2.64 .246 1.941 2.187 " 4 lbs.... 3.52 .328 2.588 2.916 5 " .... 4.40 .410 3.235 3.645 6 " .... 5.28 .492 3.882 4.374 7 " .... 6 16 .574 4.51:9 5.103 8 " .... 7.04 .656 5.176 5.832 " " " 9 " .... 7.92 .738 5.823 6.561 .88 .115 .548 .663 1: 4.8 '• " 2 lt>s 1.76 2.64 3.52 4.40 5.28 6.16 7.04 7.92 .87 .230 .345 .460 .575 .690 .805 .920 1.035 .220 1.096 1.644 2.192 2.740 3.288 3.836 4.384 4.952 .456 1.326 1.989 2.652 3.315 3.978 4.641 5.304 5.967 .676 " " 3 " " " 4 " 11 It C 11 " 6 " " " 8 " <' " 9 " Buckwheat middlings, 1 lb.. 1: 2.1 2 lbs. 1.74 .440 .912 1.352 3 " . 2.61 .660 1.3G8 2.028 4 " . 3.48 .880 1.824 2.704 5 " . 4.35 1.100 2.280 3.380 6 " . 5.22 1.320 2.736 4.056 7 " . 6.09 1.540 3.192 4.732 8 " . 6.96 1.760 3.648 5.408 9 " . 7.83 1.980 4.104 6.084 By-products .90 .186 .409 .595 1 : 2.2 2 lbs 1.80 .372 .818 1.190 134 The Farmer's Business Handbook Table II. — Continued feed Total dry matter Lbs. of digestible nutrients Kind and amount of Protein Carbohy- drates + (fatX Total Nutritive ratio 2.25) BY-PRODUCTS— Continued. Malt sprouts, 3 lbs . 2.70 .558 1.227 1.785 II « 4 u . 3.60 .744 1.636 2.380 " ii 5 " . 4.50 5.40 6.30 7.20 8.10 .24 .930 1.116 1.302 1.488 1.674 .039 2.045 2.454 2.863 3.272 3.681 .125 2.975 3.570 4.165 4.760 5.355 .164 " " 6 " " " 7 " " •• 8 " " " 9 " Brewer's grains, wet ,11b.. 1: 3.2 << << 2 lbs. .48 .078 .250 .328 U li 3 " . .72 .117 .375 .492 u a 4 " . .95 .156 .500 .656 << II 5 " . 1.20 .195 .625 .820 II II 6 " . 1.44 .234 .750 .984 II •< 7 " . 1.68 .273 .875 1.148 << <( 8 " . 1.92 .312 1.000 1.312 11 «< 9 " . 2.16 .351 1.125 1.476 << << 11 " . 2.64 .429 1.375 1.804 II Ii 12 " . 2.88 .468 1.500 1.968 << << 15 " . 3.60 .585 1.875 2.460 Brewer's grains, dry ,11b.. .92 .157 .478 .635 1: 3.0 41 << 21b3. 1.84 .314 .956 1.270 M << 3 " . 2.76 .471 1.434 1.905 l< II 4 " . 3.68 .628 1.912 2.540 <« II 5 " . 4.60 .785 2.390 3.175 «< II 6 " . 5.52 .942 2.868 3.810 II << 7 " . 6.44 1.099 3.346 4.445 it II 8 " . 7.36 1.256 3.824 5.080 II .« 9 " . 8.28 1.413 4.302 5.715 Gluten feed*. 1 lb.. .92 .194 .633 .827 1: 3.3 2 lbs. 3 " . 4 " . 5 " . 6 " . 7 " . « " 1.84 2.76 3.68 4.60 5.52 6.44 7.36 .92 1.84 .388 .582 .776 .970 1.164 1.358 1.552 .258 .516 1.266 1.899 2.532 3.165 3.798 4.431 5.064 .656 1.312 1.654 2.481 3.308 4.135 4.962 5.789 6.616 .914 1.828 << < .< < ii i n t ii • <« < 1: 2.5 " 2 lhn •From Bulletin of Information No. 1, Pennsylvania State College. Feeding Stuffs Table II. — Continued 135 Total dry matter Lbs. of digestible nutrients Kind and amount of feed Protein Carbohy- drates + (fatX Total Nutritive ratio 2.25) BY-PRODUCTS— Continued. 2.76 .774 1.968 2.742 4 " 3.68 1.032 2.624 3.656 " 5 " 4.60 1.290 3.280 4.570 " 6 " 5.52 1.548 3.936 5.484 7 " 6.44 1.806 4.592 6.398 " 8 " 7.36 2.064 5.248 7.312 .89 .075 .705 .780 1: 9.4 2 lbs 1.78 .150 1.410 1.560 3 " 2.67 .225 2.115 2.340 << 4 << 3.56 .300 2.820 3.120 5 " 4.45 .375 3.525 3.900 " 6 " 5.34 .450 4.230 4.680 7 " 6.23 .525 4.935 5.460 " 8 " 7.12 .600 5.640 6.240 9 " 8.01 .675 6.345 7.020 Linseed meal .91 .293 .485 .778 1: 1.7 2 lbs 1.82 .586 .970 1.556 " " 3 " 2.73 .879 1.455 2.334 << ii ^ ii 3.64 1.172 1.940 3.112 " " 5 "... . 4.55 1.465 2.425 3.890 « « 6 " 5.46 1.758 2.910 4.668 < r t< 6.30 1.974 3.248 5.232 Cotton-seed meal, 1 lb .92 .372 .444 .816 1: 1.2 " " 2 lbs.... 1.84 .744 .888 1.632 " " 3 " ... 2.76 1.116 1.332 2.448 << << 4 ii 3.68 1.488 1.776 3.264 " " 5 " ... 4.60 1.860 2.220 4.080 " " 6 " ... 5.52 2.232 2.664 4.896 " " 7 " ... 6.44 2.604 3.008 5.712 " " 8 " ... 7.36 2.976 3.552 6.528 " " 9 " ... 8.28 3.348 3.996 7.344 136 The Farmer's Business Handbook Table II —Continued Kind and amount of feed Total dry matter Lbs. of digestible nutrients Protein Carbohy- drates + (fatX 2.25) Total Nutritive ratio Miscellaneous Cabbage, 1 lb. .. 5 lbs.. 15 " .. 20 " .. " 25 " .. 30 " .. 35 " .. " 40 " .. Sugar beet leaves, 1 lb. . " 5 lbs. .< 15 H " 20 " " 25 " " 30 " " 35 " a 40 «< Sugar beet pulp, 1 lb . . " 5 lbs. " 15 " . " 20 «' . " 25 " . " 30 " . " 35 " . " 40 " . Beet molasses, 1 lb.. 2 lbs. " 3 " . 4 " . " 5 " . " 6 »' . " e " '. " 9 " . Apple pomace, 1 lb.*. " 5 lbs.. " 15 '« .