S sun 
 
THE 
 
 Biimne)ss. Side of Farming 
 
 PARTI 
 FARM RECORDS 
 
 ^^^> 
 
 ./ 
 
 J. A BEXELL, A. M,, 
 
 V DEAN SCHOOL OF COMMERCE 
 OREGON AGRICULTURAL COLLEGE 
 
 SECOND EDITION 
 
 Oregon Agricultural Press 
 ^ Corvallis, Oregon 
 1911 
 

 Ruled Blank Books 
 
 With printed headings may be obtained from the College Bookstore, 
 Corvallis, Oregon 
 
 APR Ja9 1915 
 
 ' 
 
CONTENTS 
 
 PART I 
 
 CHAPrrR PAGE 
 
 i. Introductory 7 
 
 ]1. Objects and Methods of Bookkeeping 9 
 
 III. Single Entry Farm Accounts 11 
 
 IV. Double Entry 21 
 
 V. Household Accounts 32 
 
 VI. The Annual Statement li 37 
 
 VII. Cost of Prodactiott.;,-: ; . .; 41 
 
 VIII. Special Records 46 
 
The College Bulletins are sent free on request. Questions on any 
 phase of The Business Side of Farming W\\\ be cheerfully answered. 
 Address Prof. J. A. Bexell, Corvallis, Oregon. 
 
This desk is provided with a fire-proof safe, combination lock, with ample 
 capacity for valuable records. See page 46. 
 
 THE FARMER'S DESK. 
 
CHAPTER I 
 INTRODUCTORY 
 
 It is a truism to say that the financial side of farming is 
 of the utmost importance. But the fact remains that this side 
 of the world's greatest industry is almost entirely neglected 
 by both the farmer and the schools. Professor Bailey says on 
 this subject: "In visiting practically every farm in one of 
 the counties of the state (N. Y.) we did not find one man who 
 knew how much it cost him to produce milk or raise any of 
 his crops." 
 
 Prosperity of the Farmer 
 
 The Secretary of Agriculture, in recent Year Books, points 
 out the remarkable prosperity of the farmer; that the export 
 of farm products is vastly in excess of all other exports com- 
 bined; that a million agricultural debtors have been trans- 
 formed during the last ten years into the same number of 
 surplus depositors; that, "contrary to his reputation, the 
 farmer is a great organizer, and that he has achieved remark- 
 able and enormous successes in many lines of economic co- 
 operation in which the people of other occupations have either 
 made no beginning at all or have nearly if not completely 
 failed." He points out that most farmers live better than the 
 average merchant or mechanic. 
 
 Causes of Success 
 
 It is doubtless true that the farmer is becoming a factor to 
 be reckoned with in the business world; that the average 
 farmer knows vastly more about scientific farming than his 
 father did; he understands more thoroughly the value of 
 proper cultivation, of fertilization, of rotation of crops, and 
 of diversified farming; but it cannot be said that he owes 
 his success to improved business methods. He has been suc- 
 cessful, rather, in spite of his ignorance in this respect, and 
 because of the lavish generosity of Mother Nature. 
 
 Two Phases of Farming 
 
 The business of farming assumes two distinct phases : the 
 productive phase and the exchange phase. The one aims to 
 
8 THE BUSINESS SIDE OF FARMING 
 
 extract the treasures from the soil ; the other, to place them 
 in the hands of the consumer. It is important not only to raise 
 abundant crops, but also to sell the products to advantage. 
 
 Importance of the Exchange Phase 
 
 The importance of the exchange phase is often lost sight of. 
 A farm may be forced to yield to its maximum capacity, labor 
 may be managed properly and waste reduced to a minimum; 
 and yet the net result may be a loss at the end of the year. 
 As a general economic proposition, it might be said that large 
 crops often result in serious loss to society as a whole. If the 
 net value to the consumer is less than the labor and capital 
 expended on the crop, society is the loser by the difference. 
 Hence the importance of a thorough understanding by the 
 farmer as well as by the merchant and manufacturer of the 
 laws and methods of exchange or commerce. 
 
 Farming- a Paying Business 
 
 That farming is a science has been emphasized so much that 
 the fact that it is also a business is often lost sight of. It is 
 a real business, and one which pays the United States close to 
 eight billion dollars annually. It has been demonstrated re- 
 peatedly that no legitimate business pays better than farming. 
 It may be a little more up-hill work at the start, since most 
 farmers begin business with small capital, but it is incompar- 
 ably safer in the long run, and will insure a competence for old 
 age with greater certainty than any other occupation. But let 
 it ever be borne in mind that the condition for success is that 
 farming must he conducted on business jDrinciples. 
 
FARM RECORDS 9 
 
 CHAPTER II 
 
 OBJECTS AND METHODS OF BOOKKEEPING 
 
 Accurate records and accounts are absolutely necessary in 
 the management of every business enterprise, great or small. 
 No business can be successful in the long run unless its con- 
 dition can be determined at any time, and no conservative 
 business man will fail to prepare a financial statement at the 
 end of his fiscal year. He must determine how he stands, not 
 only with others, but with himself. 
 
 Object of Keeping Accounts 
 
 One object of keeping accounts is to assist in accumulating 
 property. Another important object is to record a continuous 
 history of business transactions for future guidance. Not 
 only is this profitable, but it is a source of real pleasure and 
 satisfaction to know our standing with those with whom we 
 deal as well as the profits and losses in our business enter- 
 prises. 
 
 What the Records Should Show 
 
 A complete system of farm records should enable the farmer 
 to tell at any time how his business stands with himself and 
 others; the cost of production of staple crops and live stock 
 and the periodical results of both the productive and the ex- 
 change phase of his operations. The records should also show 
 personal and household expenses, and, finally, a comprehensive 
 history of the various phases of the enterprise, including plats 
 of crop rotation, fertilizing, etc. 
 
 Difficulties of Farm Bookkeeping- 
 Numerous systems of farm bokkeeping have been proposed, 
 but the trouble with them all is that they are either too com- 
 plicated or altogether unpractical. Professor Bailey says: 
 "The entire subject of farm accounting must be attacked in 
 a new way. The ordinary bookkeeping will not apply." The 
 reason is obvious. Farming is a much more complicated busi- 
 ness than most people suppose. A farmer is both a producer 
 and a dealer. He needs financial records as complete as the 
 
10 THE BUSINESS SIDE OF FARMING 
 
 average merchant and cost records as accurate as those of the 
 manufacturer. But the records must be adapted to the busi- 
 ness in hand. "The ordinary bookkeeping will not apply." 
 The farmer is usually a very busy man. His chief difficulty 
 is neither ignorance nor indolence. He has little time for 
 fancy bookkeeping and still less for "red tape." What he 
 wants is a plain, simple, straightforward history of his busi- 
 ness, so arranged and classified as to require the minimum 
 effort to keep it up. It may be interesting for his children to 
 learn the conventional use of red ink, rulings, closing of books, 
 the intricacies of journalizing, etc., but all this is not necessary 
 to a proper understanding of farm bookkeeping. 
 
 Methods of Bookkeeping 
 
 In the following pages I suggest two methods of farm book- 
 keeping whereby the yearly profit or loss may be determined 
 and compared from year to year. The first is extremely 
 simple Single Entry, while the second method is a comprehen- 
 sive, but very simple, Modified Double Entry, by which the fi- 
 nancial standing, the cost of production, profits and losses, 
 etc., can be ascertained at any time. Any farmer with average 
 intelligence will be able to master either method with small 
 expenditure of time and labor. 
 
 ALPHABETICAL FILE 
 
FARM RECORDS 11 
 
 CHAPTER III 
 SINGLE ENTRY 
 
 The Day Book 
 
 The most important record in this method of bookkeeping 
 is the Day Book, or what might properly be called the History 
 of the Farm. This should be written in the form of a diary, 
 without attempting a close classification of the entries. Al- 
 ways bear in mind, however, that it is safer to give too much 
 rather than too little information in the records. The Day 
 Book should contain any memoranda which might prove valu- 
 able for future reference. Conditions of the weather, time of 
 planting, breeding, division of fields, sales, purchases, loans, 
 attendance at conventions, valuable recipes, etc., are proper 
 subjects for entry. Though it is advisable to keep the book as 
 neat as possible, it is unnecessary to spend much time for that 
 purpose. It is more convenient to jot down items in lead pen- 
 cil as they come along, and then, as time allows, classify them 
 under their respective heads. 
 
 The Day Book and Cash Book Combined 
 
 In the form on page 13, the Day Book and Cash Book are 
 combined. The ruling is that of an ordinary stock Day Book. 
 In the left-hand column is entered all sums received and in 
 the right-hand column all payments. 
 
 While the combined Day Book and Cash Book has the advan- 
 tage of extreme simplicity, it is often more satisfactory to de- 
 vote a part of the Day Book, or a separate book, exclusively 
 to cash transactions. Where this plan is followed, it is un- 
 necessary to record all the Cash items in the Day Book. The 
 left-hand page is used for cash receipts and the opposite page 
 for payments. 
 
 Bill and Receipt File 
 
 A very important part of the farm records is the Bill and 
 Receipt File. A part of the Day Book can be devoted to thit 
 purpose, but it is better to provide a separate book. In it 
 should be securely pasted all bills for machinery, implements, 
 
12 
 
 THE BUSINESS SIDE OF FARMING 
 
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 OPENING ENTRY AND INVENTORY 
 
FARM RECORDS 
 
 13 
 
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 Cig-^-^- ig'X— - '^-M.-t^i^ 
 
 /^^X^S-fc^^-V /'cL-ciJ 
 
 DAY BOOK 
 
14 THE BUSINESS SIDE OF FARMING 
 
 tools, livestock, nursery stock, furniture, etc., which will be 
 subject to inventory, but not bills for supplies, feed, table ex- 
 penses, etc. ; also receipts for the payment of money, cancelled 
 notes, certificates of pedigree, important clippings from peri- 
 odicals, and any other matter of interest. This will prove an 
 invaluable record for future guidance. Many prefer the al- 
 phabetical file, illustrated on page 10. 
 
 The Inventory 
 
 The inventory may be considered the most important doc- 
 ument among the farm records, because without it no results 
 at all can be obtained. It should be taken at such a time as 
 will give the most accurate results with the least expenditure 
 of labor. This differs widely in different localities. January 
 1st seems the most natural beginning of the fiscal year, but 
 the objection is that at this time there is apt to be a large quan- 
 tity of feed and supplies on hand. 
 
 April 1st would be a better date so far as stock on hand 
 is concerned, but inconvenient in many localities on account of 
 the pressure of spring work. Whenever it is taken, it should 
 be accurate. No guess work should be tolerated. Weigh 
 and count; do not estimate. Then assign the actual market 
 value to the property, taking due account of depreciation. 
 
 Depreciation 
 
 Neither an old v/agon nor an old horse is worth as much as 
 new ones. The same holds true with very few exceptions of 
 all equipment, animals, houses, and improvements. The ques- 
 tion as to what rate shall be charged off annually, so as to 
 create a sinking fund with which to renew the depletion, has 
 been an open question with accountants since time immemor- 
 ial. It is particularly difficult to determine the depreciation 
 of live stock, work horses, and a depletion of the fertility of 
 the soil. Without entering into a discussion of the subject, I 
 give below the experience and opinion of the best authorities 
 on the subject. The thoughtful farmer will find no difficulty 
 in adjusting these rates to suit his conditions. For the purpose 
 of general estimates, the following rates on the cost or market 
 value are fairly accurate : 
 
FARM RECORDS 15 
 
 Buildings (including insurance and repairs) . 5 per cent. 
 
 Horses, above 5 years 10 per cent. 
 
 Milch cows 8 per cent. 
 
 Machinery and tools 10 per cent. 
 
 How to Determine the Profits 
 
 The all-important question at the end of each year is : Has 
 the work for the year been a financial success or failure? To 
 determine the profits or losses is, therefore, a problem to be 
 solved each year. As a matter of fact, it is a very simple prob- 
 lem, and it becomes easier the oftener it is done. 
 
 Let us assume that heretofore you have kept no books what- 
 ever, but you have now decided to make a start. You have pro- 
 cured a simple, substantial Day Book (may be purchased at 
 any stationery or drug store) , and after listing all your prop- 
 erty, you are prepared to make the entries shown in the illus- 
 tration. April 1st is selected as the beginning of the fiscal 
 year, because on that date the supplies, grain, feed, etc., are 
 usually low, and the average farmer has considerable time to 
 spare. Of course, this varies in different localities, and any 
 other date may be selected to suit the farmer's convenience. 
 The proper opening entries, including the inventory, are 
 shown on page 12. 
 
 A Year Later 
 
 A year has passed and we are now ready to determine the 
 result of the year's work. Since we have kept the only mem- 
 oranda in the day book, the best we can do is to take another 
 inventory exactly similar to the last one. This we will now 
 proceed to do. 
 
 The second financial statement and the statement of Profit 
 and loss are illustrated on page 17. 
 
 Net Earnings 
 
 The net profits shown in the illustration, page 17, include 
 the interest on the investment and the wages of the members 
 of the family. To find the net earnings of the proprietor, the 
 value of the household goods, life insurance, cash, and the 
 cost of the dwelling should be deducted from the last year's 
 inventory. Then find the interest on the remainder at a fair 
 rate; this deducted from the profit gives the earnings of the 
 
16 
 
 THE BUSINESS SIDE OF FARMING 
 
 family. This is illustrated further in Lesson 11. If members 
 of the family, engaged in productive work, receive regular pay 
 before the statement is made, the final result is the net profit 
 above wages and interest. The question might be asked : why 
 deduct the value of the dwelling before the interest is taken? 
 The reason is that the dwelling is not a productive investment. 
 It is apt to be more or less valuable than the average standard, 
 according to the taste and ability of the owner. Amounts 
 drawn for personal use should, of course, be added to the net 
 earnings. 
 
 Continued Inventories 
 
 It is often convenient to tabulate the annual inventories as 
 follows : 
 
 ITEMS 
 
 April I 
 1908 
 
 April 1 
 1909 
 
 April 1 
 1910 
 
 April 1 
 1911 
 
 Farm, 160 acres (market value) 
 
 Produce 
 
 Stock 
 
 Poultry 
 
 Life Insurance 
 
 Cash 
 
 8000 
 
 507| 
 1959 
 
 964 
 170 
 
 50 
 
 36 
 
 86201 
 
 547186 
 19661 
 
 126104 
 
 Total . 
 
 Personal Accounts 
 
 A farmer frequently retails his products to his neighbors or 
 to townspeople, if he lives near town. In such cases it often 
 happens that he can sell to better advantage by running an 
 account with stea'dy customers, collecting by the week or 
 month. If this phase of the business is extensive, as is the 
 case in truck farming, dairy, poultry, and the like, it would 
 pay the farmer to provide tickets or coupons and sell five or 
 ten dollars' worth in advance even at a small discount. But 
 generally an account with each customer, kept either in a sep- 
 arate book or in part of the Day Book, will be found satisfac- 
 tory. However, most farmers sell their products for cash, or 
 exchange for merchandise, which is equivalent to cash sales. 
 It is, therefore, unnecessary to enter into an elaborate dis- 
 cussion of keeping such accounts. 
 
 Some farmers, very unwisely, attend to the personal busi- 
 ness of their hired help, even to the extent of buying their 
 smoking tobacco. There is absolutely no excuse for such a 
 
FARM RECORDS 
 
 17 
 
 
 SECOND FINANCIAL STATEMENT 
 
18 
 
 THE BUSINESS SIDE OF FARMING 
 
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FARM RECORDS 
 
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20 THE BUSINESS SIDE OF FARMING 
 
 practice. Rather pay your help in installments and let them 
 settle their own bills. 
 
 Accounts with persons we owe are generally unnecessary. 
 Most merchants furnish either a pass book, in which the ac- 
 count is shown in detail, or an itemized bill is furnished with 
 each purchase. These bills should be pasted in the Bill File 
 and checked off when paid. In the great majority of cases 
 this will prove more satisfactory than ledger accounts. 
 
 A special ledger can be provided, or separate pages of the 
 Day Book devoted to special accounts. This classification is 
 made either daily, weekly or monthly, as time and circum- 
 stances allow. 
 
FARM RECORDS 21 
 
 CHAPTER IV 
 
 MODIFIED DOUBLE ENTRY 
 
 Ancient Methods 
 
 Not many generations ago it was considered sufficient for 
 the average manufacturer merely to record his cash receipts 
 and expenditures and to keep a tolerable accurate check on 
 the cash balance. In many instances, the left trousers pocket 
 served as the debit side and the right as the credit side of the 
 "Ledger." Modern business methods and sharp competition 
 have changed these notions until today it is necessary to know 
 the cost of production in advance to the smallest detail. 
 Ancient business methods prevail yet, very generally, on the 
 farm. The wonderful progress of the American farmer is 
 due to marvelous natural resources, labor-saving inventions, 
 and natural ingenuity, rather than to wise and prudent man- 
 agement. 
 
 Necessity of Careful Management 
 
 In certain respects, a farmer must combine the methods of 
 the manufacturer and the merchant. He must learn, not only 
 how to increase production, but also how to facilitate the prof- 
 itable exchange of his products. He must reduce the cost of 
 production to the minimum by increasing the quality and the 
 quantity of his products, and by getting full value out of labor. 
 He must manage so that his working force, farm hands, chil- 
 dren, horses, all, are constantly employed. This requires most 
 skillful management in the rotation of crops, in the division 
 of labor, in selecting seeds, fertilizers and stock; and, above 
 all, it requires general prudence in purchasing equipment and 
 supplies, and in marketing products. Progressive farmers 
 require a variety of records to assist in the proper manage- 
 ment of their business. A first-class set of books is just as 
 indispensable to them as to the banker or to the manufacturer. 
 
 Superiority of Double Entry 
 
 A careful comparison of the results obtained in the last 
 chapter with the balance sheet given on page 39 will convince 
 the reader of the superiority of double entry. It will be ob- 
 
22 
 
 THE BUSINESS SIDE OF FARMING 
 
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24 THE BUSINESS SIDE OF FARMING 
 
 served that the only result obtained by a comparison of inven- 
 tories was the net profit or loss. The source or causes of these 
 results cannot be obtained by this method. The method sug- 
 gested in Chapter III has this advantage: There is not a 
 farmer so busy or so ignorant that he cannot adopt it and 
 derive great benefit from its use. But the ambitious, pro- 
 gressive farmer will not be satisfied with this primitive 
 method any more than a wide-aw^ake merchant will be satis- 
 fied with single entry bookkeeping. He will adopt a system 
 which will give him at any time reliable information as to his 
 financial standing, cost of production of crops, live stock and 
 poultry, household expenses, etc., and by which he can prove 
 that his work is correct. 
 
 Single and Double Entry Compared 
 
 The distinction between single and double entry is unimpor- 
 tant for our present purpose, but it may be a satisfaction to 
 the reader to know that the method we are now to consider 
 is double entry in a modified form. The important distinc- 
 tion between the two methods is that in double entry 
 accounts are kept with persons, property, and allowances, 
 while in single entry accounts are kept with persons only. In 
 double entry there is a corresponding debit for every credit; 
 the total debits and credits must, therefore, be equal and must 
 balance at any time. This becomes clear by referring to the 
 Cash Book below. In the first entry, the amount is entered 
 in both the Total and in the Sundries column; and the same 
 is true of all the succeeding entries. Hence the sum of col- 
 umns four to ten inclusive must equal the total in column 
 three. You will find the same to be true of the Payments, and 
 of the Household Accounts. 
 
 Additional Books Needed 
 
 Very important books in double as well as in single entry 
 are the Day Book and the Bill File. They are to be kept in 
 exactly the same way as suggested under single entry, except 
 that no cash entries are recorded in the Day Book, which is 
 kept only as a diary. The important consideration now is to 
 adopt additional records that will furnish the necessary in- 
 formation in systematic and tabular form, and requiring the 
 minimum amount of labor. 
 
FARM RECORDS 25 
 
 The Cash Book 
 
 The Cash Book is the basis of classification. A very con- 
 venient form is given on pages 23 and 24. The special col- 
 umns take the place of a ledger. All money columns except 
 the total column will be referred to as Distribution Columns. 
 They are in reality separate accounts, and this form might, 
 therefore, properly be called a combined Ledger and Cash 
 Book. The form suggested has the important advantage of 
 being self-balancing. A trial balance can be taken at the end 
 of each page, month or year, as illustrated on page 33. The 
 process of preparing a financial statement becomes extremely 
 simple by this method. A few observation regarding equip- 
 ment and supplies, improvement and repairs will be of assist- 
 ance in using the distribution columns. 
 
 Equipment and Supplies 
 
 In accurate accounting, the question often arises : What 
 shall be considered equipment, and what supplies? Supplies 
 are defined as expendible or consumable materials, which are 
 incapable of being used more than once; while equipment is 
 of more permanent character, articles which can be used re- 
 peatedly. Fuel, lubricating oil, cotton waste, feed, etc., are 
 supplies; while machinery, furniture, and apparatus of all 
 kinds are equipment. 
 
 Improvement and Repairs 
 
 The distinction between improvements and repairs is not 
 always clearly understood. An improvement adds value to 
 the property, in the shape of equipment, buildings, drains, 
 fences, and the like ; while repairs merely keep up the prop- 
 erty. A coat of paint on an unpainted building is an improve- 
 ment; repainting is classed under repairs. This distinction 
 is very important in making an inventory. Improvements are 
 added to the inventory, repairs are not. 
 
 Cash Balance and Sundry Columns 
 The cash balance is found as follows: 
 
 Total receipts $653.14 
 
 Total payments 578.80 
 
 Balance $ 74.34 
 
26 THE BUSINESS SIDE OF FARMING 
 
 Note that the totals of columns four to ten equal the total 
 of column three ; and that columns fifteen to twenty-two equal 
 column fourteen. The Sundries column contains all entries 
 which do not fall under the special columns. At the end of 
 the year, the items are segregated under various titles. The 
 segregation for the month of April is as follows : 
 Sundry Receipt Column (10) : 
 
 Balance $126.01 
 
 Labor 10.00 
 
 Wood 22.40 
 
 Total $158.44 
 
 Sundry Payment Column (22) : 
 
 Interest $ 22.00 
 
 Taxes 33.40 
 
 Accounts Pay 15.80 
 
 Insurance 35.10 
 
 Total $106.30 
 
 Improvements and Repair Column (21) : 
 
 Improvements $ 80.00 
 
 Repairs 34.60 
 
 Total $114.60 
 
 Trial Balance 
 
 In the language of the accountant, a trial balance is a test of 
 the equality of the debits and credits in a set of double entry 
 books. Our trial balance is much simpler; it is simply a test 
 of equality of the total columns and the distribution columns. 
 In the Cash Book, merely add the distribution columns on each 
 side and note that their sum equals the resjiective total col- 
 umns. The Household and Shop accounts are balanced in the 
 same manner. 
 
 Banking 
 
 The enormous increase in bank deposits in rural cDmmuni- 
 ties is the best evidence that the farmer is beginning to 
 appreciate the value of better system in his finances. It is 
 claimed that fully ninety-five per cent, of the country's busi- 
 ness is done by credit currency, such as checks, drafts, money 
 
FARM RECORDS 
 
 27 
 
 ife llei A/ff Pa-t/ff 
 
 MosiU G'hecks Au/. 
 
 ^^lc^a<t*'£:^e- a^ ^-e^t^ /a.t~^ «ge>»>-/C 
 
 BANK ACCOUNT 
 
28 THE BUSINESS SIDE OT FARMING 
 
 orders, notes, and the like. Many good business men keep only 
 their bank book, and this is far more satisfactory than no 
 bookkeeping at all, especially if bills and receipts are filed for 
 reference. The bank account may be carried entirely inde- 
 pendent of all other records. 
 
 Banking carries with it many advantages. Important 
 among them are : — 
 
 1. The depositor's credit and influence are measured 
 largely by the size and regularity of his bank account. 
 
 2. A tendency to economize by a desire to increase the 
 bank balance. 
 
 3. The banker becomes your bookkeeper and business 
 counselor. 
 
 4. Security against fire and robbers. 
 
 5. Indorsed checks are both records and receipts of pay- 
 ments. 
 
 6. A benefit to the community by keeping the money in 
 circulation. 
 
 7. Convenience in making change. 
 
 8. The bank will always loan to a good depositor in pref- 
 erence to one who is not a depositor. 
 
 There are only two operations in banking which need dis- 
 cussion here — depositing and checking. The banker will give 
 all necessary directions regarding both, except as to keeping 
 the individual account. This is illustrated on page 27, and 
 will be thoroughly understood after Lesson 5 has been 
 worked out. The special column Cash Book, pages 22 and 23, 
 is an excellent form for keeping the bank account. If all 
 cash is deposited and all payments made by check, the dif- 
 ference between the total columns represents the bank bal- 
 ance. As to deposits, it is preferable to deposit all cash, and 
 then draw out for personal use as needed. 
 
 The method of handling checks is as follows: Record the 
 payee, number, the amount, as illustrated under Cash Pay- 
 ments, page 38. The checks are satisfactory receipts, but the 
 itemized bills should be pasted in the Bill File and bear the 
 same number as the checks. The bank will usually furnish 
 all necessary stationery free of charge. The bank balance is 
 considered a part of the cash on hand, so that no special 
 account except the check stubs and pass book need be kept 
 with the bank. The bank balance is proved each month as 
 
FARM RECORDS 
 
 29 
 
 BILL AND RECEIPT FILE 
 
30 THE BUSINESS SIDE OF FARMING 
 
 follows: Arrange the checks returned numerically.- List the 
 checks not returned; add the outstanding checks to the bal- 
 ance shown in the check register; the sum should agree with 
 the balance in the pass book. It is often convenient to keep 
 a special check register. Page 27 is a convenient form, 
 showing the method of proving the balance at the bottom of 
 the page. 
 
 The Ledger 
 
 With a special column cash book, the ledger can be dis- 
 pensed with in most cases. The further classification of the 
 sundry columns can be done at the end of the year, as illus- 
 trated on page 26, and a few pages of the Day Book can be de- 
 voted to "What We Owe Others" and "What Others Owe Us." 
 Where a special ledger is found necessary, the form shown 
 on page 18 can be used. 
 
 The old style ledger possesses some advantages over any 
 other form. The debit appears on the left and the credit on the 
 right side on the same page. It is used in either double or 
 single entry. The difficulty of keeping the ledger in balance 
 prevents the use of the double entry ledger to a very large ex- 
 tent. This is especially true if an attempt is made to use the 
 ordinary Journal. 
 
 Direct entries into either the double or single entry ledger 
 present less difficulties, and the method is recommended where 
 the classification of accounts is such as to make the combined 
 Cash Book and Ledger unpractical. This need scarcely ever 
 be the case, however, because if ruled sheets cannot be obtained 
 without headings, a blank sheet may be ruled with any number 
 of columns and headed with titles to suit. For example, an 
 orchardist would head his Receipt Columns: Apples, Prunes, 
 Peaches, Small Fruits, etc. While an exclusive stock farmer 
 would devote special columns to the different kmds of stock. 
 
 The advantage of the ledger method is that each account is 
 more condensed, while the self-proving and labor-saving fea- 
 tures are important in the Special Column Cash Book. Prepar- 
 ing a trial balance and balance sheet, and closing the ledger 
 properly, though very simple for the experienced accountant, 
 requires a proficiency in bookkeeping that few farmers pos- 
 sess. 
 
 On page 19 is an illustration of the ordinary form of direct- 
 entry ledger, showing the entries for April 1st. Compare these 
 
FARM RECORDS 31 
 
 with the first entries on pages 23 and 24, and note the similar- 
 ity of results. In the form on page 19 follow the arrows and 
 note that there is a debit for every credit, and vice versa. In 
 the column marked (a) is entered the Day Book page, if the 
 entries have been previously made in that book. 
 
 The Voucher System 
 
 It is often preferable, especially on a large farm, and in a 
 corporate business, to pay all bills by check. When this plan 
 is followed, it is unnecessary to copy the items, as in the illus- 
 tration, page 24, but merely to write the name of the payee 
 in the items column. The distribution should be noted on the 
 bill or voucher, and all the vouchers, together with the can- 
 celed checks, should be filed in envelopes, properly numbered 
 to correspond with the number of the check. The accounts 
 are fully illustrated on page 38. 
 
 Adaptation of This System to Any Business 
 
 The foregoing system of accounting can be adapted very 
 readily to any business, and it is especially recommended for 
 a cash business, where the personal accounts are few. Instead 
 of Hay, Grain, etc., the orchardist would head his columns 
 Apples, Pears, etc., while other enterprises would use head- 
 ings best suited to their business. 
 
 Orchard Accounts 
 
 On page 38 will be found two illustrations of the voucher 
 system and the proper classification of orchard accounts. The 
 only difference between the two forms is that Form B has 
 a larger distribution of the payments and a smaller distribu- 
 tion of the receipts. Blank forms, No. 14-15 for A, and 16-17 
 for B, can be secured from the College Bookstore. The Assess- 
 ment column in Form A, Receipts, is used in a corporate 
 business. The personal accounts can be carried as illustrated 
 on page 18, and the Special Records in Chapter VIII can be 
 modified very readily to suit the needs of any special business. 
 The continued inventory, illustrated on page 16, is recom- 
 mended. 
 
32 THE BUSINESS SIDE OF FARMING 
 
 CHAPTER V 
 
 HOUSEHOLD ACCOUNTS 
 
 It will be seen that no provision has been made in the Gen- 
 eral Cash Book for separate items in the household accounts. 
 This is left for the housekeeper. The fact that her field is 
 somewhat limited, from a business point of view, is no argu- 
 ment in favor of loose and careless methods of accounting. 
 
 Most housekeepers prefer to receive a fixed allowance for 
 household expenses, whenever it is practicable. For the pres- 
 ent purpose we will suppose that the following agreement has 
 been entered into between the farmer and his wife. She is 
 to receive the following: 
 
 Monthly Allowances for Household and Personal Expenses 
 
 For proprietor and wife $25.00 
 
 Board for hired help 15.00 
 
 For four children 32.00 
 
 Sundries 18.00 
 
 Total $90.00 
 
 In addition to the cash allowance, vegetables, poultry and 
 dairy products are furnished from the farm at market price. 
 The proprietor gives his wife an allowance of $90 each month, 
 either in one or in several payments, and enters it in his cash 
 expenditures. His wife, in turn, enters her allowance in her 
 record. Bills for furniture, clothing, and utensils are pasted in 
 a Bill and Receipt File, same as in the Farm Accounts. 
 
 Note that the items entered in columns one and two are also 
 entered in columns eight, nine, or ten, since they are purchases 
 from the farm. Because they are entered both as receipts and 
 payments, they do not affect the cash balance. 
 
 At the end of the year, the proprietor enters the totals of 
 columns one and two in his cash receipts, under the proper 
 headings, and at the same time they are entered as cash pay- 
 ments in the household column. See page 22, under April 30th. 
 Thus the farm will receive full credit for what it sells to the 
 household as well as to others. 
 
 It is suggested that the housekeeper open a private bank 
 account and pay large items by check. See April 13th, 29th 
 
FARM RECORDS 33 
 
 and 30th. There are numerous advantages in keeping a bank 
 account. See page 26. A bill for furniture, utensils, and im- 
 provements should always be taken and pasted in the Bill File. 
 It is convenient to number the bills the same as the checks, as 
 suggested in column six. Since endorsement by the payee 
 constitutes receipt, it is generally unnecessary to take receipt 
 when paymenl is made by check. 
 
 Page 34 shows a convenient form of a combined household 
 Cash Book and Ledger. A summary of the receipts and pay- 
 ments is prepared at the end of the year, as shown on page 36. 
 
 Trial Balance 
 
 Groceries $ 13.05 
 
 Meat 11.80 
 
 Dairy and Poultry 12.40 
 
 Clothing 16.85 
 
 Furniture and Utensils 22.05 
 
 Help and Laundry 11.60 
 
 Library 6.65 
 
 Light and Fuel 6.10 
 
 Gifts 2.35 
 
 Personal 1.25 
 
 Travel and Recreation 3.00 
 
 Incidentals 2.65 
 
 Physician and Medicine 1.50 
 
 Telephone Rental 1.50 
 
 Total $112.75 
 
 The Voucher System 
 
 It is often preferable, especially in a large household, to pay 
 all bills by check. When this plan is followed, it is un- 
 necessary to copy the items, as in the illustration, but merely 
 to write the name of the payee in the items column as 
 shown under April 29, Murdock Grocery Company. The 
 distribution should be noted on the bill and all vouchers to- 
 gether with the cancelled check should be filed in envelopes 
 properly numbered to correspond with the number of the 
 check. 
 
 See illustration, page 38. 
 
34 
 
 THE BUSINESS SIDE OF FARMING 
 
 HOUSEHOLD ACCOUNTS 
 
 HOUSEHOLD 
 
FARM RECORDS 
 
 35 
 
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36 
 
 THE BUSINESS SIDE OP FARMING 
 
 SUM1\4ARY OF HOUSEHOLD ACCOUNTS, 
 
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 SUMMARY OF HOUSEHOLD ACCOUNTS 
 
FARM RECORDS 37 
 
 CHAPTER VI 
 
 THE ANNUAL STATEMENT. 
 
 The annual statement exhibits in a condensed form the 
 financial operations for a given period. It shows the resources 
 and liabilities, the cash receipts and expenditures, the profits 
 and losses, the net profit or loss, and the net worth. It enables 
 the proprietor to analyze his business with considerable ac- 
 curacy and to trace the sources of profits and losses. There 
 are various forms of statements, but the illustration on page 
 39 seems best suited to the farming business. Statement 
 No. 3 shows the results of a month's business only. The 
 inventories are obtained from separate schedules and the cash 
 receipts and expenditures are the totals found in the Cash 
 Book. 
 
 The revenue accounts, or the accounts showing profit or loss, 
 are fully analyzed on page 40. This is wholly independent of 
 the other records. Three or four of the principal enterprises 
 may be analyzed, as in the illustration, or the statement may 
 go into greater detail to suit the condition of the business. In- 
 dividual cost accounts are illustrated on page 43. 
 
 The method of preparing these accounts is as follows : Take 
 the Grain account for example. We debit it with all the items 
 that enter into the cost of its production, and credit it with the 
 returns. The first item of cost in last year's inventory 
 Financial Statement No. 2; Lesson 4), is $377.86; Labor 
 (Horse and Man, from Labor Record), $440.00; Interest on 
 the value of Land devoted to Grain (56 acres @ $55.00 per 
 acre), 6 per cent, $184.80; Seeds and Fertilizers (Cash Pay- 
 ments), $129.71. The returns are: Present Inventory, 
 $380.00; Cash Receipts, $712.43; Fed to Stock (Feed Record 
 assumed) , $770.07 ; Fed to Poultry, $50.00. From this we ob- 
 tain the net profit, $780.13. 
 
 In- a similar manner we consider the Stock account and the 
 Hay account. The illustrations, pages 39 and 40, show the 
 figures supplied from each account. 
 
 It should be borne in mind that this exercise in cost account- 
 ing is only suggestive. The principles are fundamental and 
 correct, but their application in practice may vary greatly. 
 
38 
 
 THE BUSINESS SIDE OF FARMING 
 
 
 
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 ORCHARD ACCOUNTS 
 
FARM RECORDS 39 
 
 Thus, some farmers will charge live stock a certain amount 
 for housing, perhaps also for the use of utensils, machinery, 
 and the like ; others will insist on deducting the cost and care 
 of the dwelling from the annual farm inventory, since this is 
 not capital invested in the business. For a full discussion of 
 this subject, see Bulletin 73, Bureau of Statistics, U. S. De- 
 partment of Agriculture. 
 
 Financial Statement, Year E.nding 
 
 «-?/,. 19/0. 
 
 CasK Receipts and Payments 
 
 Grain 
 
 Hay 
 
 Orchard and Garden 
 
 Stock 
 
 Dairy 
 
 Poultry 
 
 Sundries (itemize below) 
 
 . /2o.4,Zo 
 
 Payments 
 Houaehold and Personal $ //^ ^ fo 
 
 .,/;t.9.7> 
 
 Resources and LtalDUities 
 
 Farm (market value) tfP^.P 
 
 Caeh and Bank, as abovft '^/'■^ 
 
 Life Insurance, paid upvalue.. /.f.3/ 
 Stock (a) ''^'V 
 
 Grain (a). 
 
 Hay (a) 
 
 Orchard and Garden (a) 
 
 Dairy Products (a) 
 
 Poultry (a) 
 
 Implements (a) 
 
 Household Goods (aj. ... 
 General Supplies (a). 
 
 
 Total .... 
 
 B per lovtntory. (b) DifTcM 
 
 V^fA^l 
 
 >n>. 
 
 Hired Labor . •. . . 
 
 Bills Payable 
 
 Accounts Payable . 
 Gifts 
 
 
 %....J.^\. 
 
 JtZ.o.« 
 ...ffi 
 
 Net worth *' 
 
 Total %/^7f^ 
 
 J^ 
 
 1 Rcc«ipu and P.ymrnls. 
 
 St&temenl of Profit and Losa 
 
 Net worth as above .. .^. ........ . 
 
 Net worth last year. . . /. Ai . AJ. . . 
 
 Gain for the year 
 
 Less interest on investment. 
 
 
 Net earnings 
 
 '/p.j.'i.iA'f.'f: 
 
 GENERAL BALANCE SHEET 
 
40 
 
 THE BUSINESS SIDE OF FARMING 
 
 Accounts Showing Profit or Loss, Year Encling./^(;2r*<^.«^/^ 19/C? 
 (AmountB are taken from Inventories, Cash Book, and Special Records.) 
 
 GRAIN 
 
 COBT. 
 
 IriVenlory last year $ 
 
 Labor 
 
 loterest on Va^ue of Land / 
 
 OCeJ.if- /^eru/i le.r^., 6as.H. 
 
 Returns, 
 
 tP./^AP.v Present Inventory . . 
 
 il V^l Receipts from Sales 
 
 to Fed to Stock 
 
 .Hfi'//. Fed to Poultry 
 
 
 17/ X.. 
 
 Total %/.f./.Z\'^0 
 
 Total %/.f./.^. 
 
 ■^ 
 
 STOCK 
 
 Cost 
 
 Inventory last year $ 
 
 Labor 
 
 Grain 
 
 Hay 
 
 Interest on Inventory last year 
 
 Pasturage on Land 
 
 bo^Ahr 
 
 J.tS 
 /3M'. 
 
 
 
 Present Inventory 
 
 Receiptu from Sales /3.Q. ft 
 
 Receipts from Dairy /.O. AS. 
 
 So 
 
 /a. 
 
 Labor (Cash Receipts. 
 
 /.j-^/.r 
 
 7^ 
 
 7f Total %¥?Z/. 7:y 
 
 ORCHARD AND GARDEN 
 
 Inventory last year . . 
 Labor and Marketing. 
 Interest on Land . . . . 
 
 Inventory last year. 
 
 Labor 
 
 Interest on Land. . 
 
 Present Inventory. 
 Receipts 
 
 HAY 
 
 
 Present Inventory. 
 
 Receipts 
 
 Fed to Stoci 
 
 '■M& 
 
 7r 
 
 .... %.s-jizp:^ 
 
 (Account) . . 
 
 
 rS- 
 
 t 
 
 GENERAL BALANCE SHEET 
 
FARM RECORDS 41 
 
 CHAPTER VII 
 COST OF PRODUCTION 
 
 Too often a good farm is compelled to carry unprofitable 
 experiments and the whole business is pronounced a failure 
 without an adequate attempt to find a remedy. In addition to 
 the foregoing records, Mr. Harris has kept accurate cost ac- 
 counts of the main branches of his business. In cost account- 
 ing there are four principal elements to consider: Cost of 
 material, labor, interest, and depreciation. The cost records 
 are independent of all the rest and may be kept of every branch 
 of the business, if desired, or limited to one or more phases. 
 In this instance, cost records have been kept of Live Stock, 
 Grain, Hay, Dairy Products and Improvements. The Agricul- 
 tural Experiment Stations are always willing to give the farm- 
 er important advice and assistance regarding the stock, grain, 
 fruit, etc., best adapted for different localities and purposes. 
 But conditions frequently arise where it is important for the 
 farmer to carry on his own experiments. Your own Experi- 
 ment Station will doubtless be glad to co-operate and suggest 
 methods for carrying on such experiments even to the extent of 
 furnishing necessary blanks and material. Important bulletins 
 on the subject may be had for the asking from the Department 
 of Agriculture, Washington, D. C, : 
 
 The following announcement in the Crop Reporter for May, 
 1908, indicates what the government is doing in this direction : 
 
 Cost of Producing Farm Products 
 
 "The Bureau of Statistics is making an investigation of the 
 cost of producing farm products in different parts of the 
 United States. Blank forms have been printed upon which 
 to make reports, and this Bureau desires to receive the names 
 of such farmers as have kept records of cost of producing 
 crops, or are well informed upon the subject of cost of crop 
 production in their locality, in order that blank schedules may 
 be sent to them to fill in. Individual reports will not be pub- 
 lished—only the average of many reports. Names should be 
 sent to the Bureau of Statictics, Department of Agriculture, 
 Washington, D. C." 
 
42 THE BUSINESS SIDE OF FARMING 
 
 Every farmer should avail himself of this important free 
 service. "Keeping posted" is one of the characteristics 
 of the progressive and successful farmer. There are two ex- 
 ceptionally valuable bulletins on the subject which ought to be 
 in the library of every farmer : U. S. Department of Agricul- 
 ture, Bureau of Statictics, Bulletin No. 48, and University of 
 Minnesota, Agri. Ex. Station, Bulletin No. 97. 
 
 Live Stock 
 
 Either of three methods may be employed in finding the cost 
 of live stock. 
 
 First Method. Ascertain exactly the total amount of grain, 
 hay, and roughage on hand at the beginning of the year, and 
 produced during the year. From this subtract the quantity 
 sold, including amount used by the household and for seed, and 
 the amount on hand at the end of the year. The difference is 
 the quantity used for live stock. The value at market prices 
 is the expenditures of feed for live stock. 
 
 Find the total amount received for dairy products, including 
 amount used by the household. The difference between the 
 cost and the receipts is the gain. The disadvantage of this 
 method is that no account is taken of individual animals nor of 
 different kinds of stock. The herd as a whole may be a paying 
 investment and still there may be individual animals carried at 
 a loss. It is desirable that such records be kept, at least occa- 
 sionally, as will enable the farmer to eliminate unprofitable 
 animals. 
 
 Second Method. The following actual record of a dairy 
 herd of twelve cows illustrates a much more satisfactory test 
 than the preceding. Individual record was kept of the milk 
 produced by each cow, but the feed was weighed for the entire 
 herd, and the average cost charged to each animal at market 
 prices. 
 
 With this average before him, a careful feeder win be able 
 to make mental corrections for each individual animal, accu- 
 rate enough for most practical purposes. The milk record has 
 been kept, as illustrated on page 49 
 
FARM RECORDS 
 
 43 
 
 
 
 
 
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 COST ACCOUNTS 
 
44 
 
 THE BUSINESSS SIDE OP FARMING 
 
 Test of Dairy Herd for March, 1909 
 
 No. 
 
 Lbs. Milk 
 
 
 Lbs. 
 
 Val. at 
 
 Cost of ' 
 
 Net 
 
 Cow. 
 
 for Mo. 
 
 *Test. 
 
 Fat. 
 
 36c. 
 
 Feed. 
 
 Profit. 
 
 1. 
 
 465 
 
 4.5 
 
 20.93 
 
 $ 7.53 
 
 $6.21 
 
 $1.32 
 
 2. 
 
 372 
 
 5.0 
 
 18.60 
 
 6.70 
 
 
 .49 
 
 3. 
 
 620 
 
 5.0 
 
 31.00 
 
 11.16 
 
 
 4.95 
 
 4. 
 
 372 
 
 7.0 
 
 26.04 
 
 9.37 
 
 
 3.16 
 
 5. 
 
 496 
 
 4.8 
 
 23.80 
 
 8.57 
 
 
 2.36 
 
 6. 
 
 682 
 
 4.7 
 
 32.05 
 
 11.54 
 
 
 5.33 
 
 7. 
 
 558 
 
 4.4 
 
 24.55 
 
 8.44 
 
 
 2.23 
 
 8. 
 
 620 
 
 4.1 
 
 25.42 
 
 9.15 
 
 
 2.94 
 
 9. 
 
 496 
 
 4.2 
 
 20.83 
 
 7.50 
 
 
 1.29 
 
 10. 
 
 651 
 
 4.9 
 
 31.90 
 
 11.48 
 
 (( 
 
 5.27 
 
 11. 
 
 558 
 
 5.0 
 
 27.90 
 
 10.04 
 
 
 3.83 
 
 12. 
 
 589 
 
 5.0 
 
 29.45 
 
 10.60 
 
 
 4.39 
 
 
 *These figures were 
 
 obtained 
 
 by the Babcocl? 
 
 test, which 
 
 is de- 
 
 scribed in every modern worli on dairying. 
 
 Feed for the Month of March 
 
 Hay, 4,900 lbs. at $9.00 per ton $22.05 
 
 Kale, 9,600 lbs. at $2.50 per ton 12.00 
 
 Bran, 1,800 lbs. at $30.00 per ton 27.00 
 
 Shorts, 900 lbs. at $30.00 per ton 13.50 
 
 Total $74.55 
 
 74.55 divided by 12 equals 6.21, average cost of feed. 
 Third Method. The difference between the second and 
 third methods is that in the latter accurate records are kept 
 of individual feed rations, while in the second method an aver- 
 age is taken. The error resulting from averaging the feed be- 
 tween all the animals in a large herd may be such as to unduly 
 favor certain animals and do injustice to others. The only ab- 
 solutely accurate method is to keep an account with each ani- 
 mal ; at least with such animals as show a tendency to be un- 
 profitable. Page 43 shows an individual account with one of 
 the milch cows on the Harris farm. It is arranged on the 
 regular Ledger form. Opposite pages of the Day Book m.ay 
 also be used. The detailed information regarding Feed, Milk, 
 Labor, etc., is found in the respective records, illustrated on 
 pages 49 and 50 respectively. Similar accounts are kept of 
 each animal, tested preferably during the entire lactation 
 
FARM RECORDS 45 
 
 period. It is only in this way that the careful farmer can de- 
 termine whether each animal is kept at a gain or a loss. The 
 weeding out of one or two unprofitable animals a year will 
 pay for the labor of keeping the cost records many times over. 
 
 Cost of Crops 
 
 The principles laid down in respect to the cost of animal 
 products hold true also for the cost of farm crops. Two meth- 
 ods suggest themselves. Accounts with the various crops and 
 accounts with the different fields. Either method requires de- 
 tailed records of the labor, seed, fertilizer, etc., expended on 
 the crop and of returns not only for cash sales, but for prod- 
 ucts used by the household and for feed. On page 43 is illus- 
 trated an account with the wheat crop in 1908. Only one item 
 needs explanation, that of depreciation, due to continuous 
 cropping. Whether the rate, two per cent, is too high or too 
 low, matters little; the important point to be emphasized is 
 that the value of the land diminishes unless rotation of crops 
 is practiced. 
 
46 THE BUSINESS SIDE OF FARMING 
 
 CHAPTER Vm 
 
 SPECIAL RECOKDS. 
 
 There are several convenient special records which ought to 
 be adopted, besides those I have illustrated. It is not neces- 
 sary that expensive printed books be provided. A plain sheet 
 of paper may be ruled as suggested below and pasted in the 
 Bill File. In fact, this is in many respects preferable to 
 printed forms, because the forms can then be changed from 
 year to year to suit conditions. 
 
 Labor Records 
 
 The best form of labor record is illustrated on pages 49 and 
 50. In one, account is kept with the object upon which labor is 
 expended; in the other, with the laborer. For ordinary pur- 
 poses, page 49 is the most convenient, but where several men 
 are engaged on a project, form (a), page 61, is preferable. 
 
 Where the loose leaf book is used it is convenient to tack a 
 sheet to a board, and hang it in a convenient place until it is 
 filled, when it may be filed permanently. See illustration, 
 page 53. 
 
 Milk Records 
 
 Two milk records are illustrated on pages 49 and 51. Each 
 possesses certain advantages over the other. The weekly re- 
 cord need not be so large and admits of larger spaces, while the 
 monthly record exhibits the entire month's result on a single 
 page. The weekly record is more appropriate for filing, being 
 less liable to soiling. Whichever form is used, it should be 
 tacked to a board in a convenient place for the milker. A 
 spring scale, graduated to hundredths, should be hung near 
 the record, far enough from the wall for the pail to hang 
 freely. The original records should be filed for at least a year. 
 If a daily time book is kept, it may also be adapted for the 
 milk and poultry records. 
 
 Poultry Records 
 
 Practically the same form as the milk record can be used 
 conveniently for the Egg record, and it is not deemed necessary 
 to enlarge further on the subject. 
 
FARM RECORDS 47 
 
 The methods of improving the poultry stock, and other 
 ful information regarding the poultry business, is found in 
 numerous books and bulletins on the subject. 
 
 Duplicating Sales Book 
 
 It is often convenient to retain a duplicate of sales, orders, 
 receipts, etc. It will be found very helpful to the farmer and 
 to the dealer alike, if the farmer prepares a bill of the produce 
 he brings into town for sale. This will often avoid misunder- 
 standing and may save money. This is especially true if the 
 produce is sent in by children or by someone not connected 
 with the family. On page 51 is illustrated a very convenient 
 book which is kept in stock in most stationery stores. Where 
 this system is used, it is advisable that every sale be recorded, 
 and then listed as shown on page 50. In entering in the Cash 
 Book, the sale number should be inserted. All sales to mer- 
 chants should be considered as cash, even if the produce is 
 exchanged for merchandise. If sales are made on time, note 
 the fact on the bill, and enter it into the personal account as 
 illustrated on page 18. 
 
 The Farm Plot 
 
 There is one more record which I cannot urge too strongly. 
 I refer to the yearly plots. This record will prove to be one 
 of the most valuable and interesting parts of the farm history. 
 A plot is easily made by first drawing a square on a blank 
 piece of paper and then sketching the fields. It is, of course, 
 unnecessary to draw this to scale. A close approximation is 
 all that is necessary. Below is an illustration. 
 
 The Farm Office 
 
 Talk about an office on the farm! Why not? Why should 
 not the average farmer enjoy at least a comfortable desk and 
 neatly printed stationery? Every boy loves "to do business." 
 Surround him with a business atmosphere on the homestead 
 and he will stay by you and succeed you in your old age ; con- 
 tinue in your slip-shod methods and he will move to town and 
 become a cheap clerk instead of a landed proprietor. Encour- 
 age your children to assist in your business; make them feel 
 that they are intimately associated with you ; take them into 
 your confidence and, as they grow older, into your counsel, 
 
48 THE BUSINESS SIDE OF FARMING 
 
 especially when you are considering j^our annual balance sheet 
 and a greater prosperity, wider influence, and a more con- 
 tented family will be your reward. 
 
 A very convenient desk is illustrated on page 6. Besides 
 the usual drawers, pigeon holes, etc., it contains a fire proof 
 safe which affords ample protection against fire and burglars. 
 It is built especially for farmers by The J. K. Gill Company, 
 Portland, Oregon, at a very moderate price. 
 
FARM RECORDS 
 
 40 
 
 MILK RECORD 
 
 Week ending 
 
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60 
 
 THE BUSINESS SIDE OF FARMING 
 
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 SPECIAL RECORDS 
 
FARM RECORDS 
 
 51 
 
 TIME AND SALES BOOK 
 
52 
 
 THE BUSINESS SIDE OF FARMING 
 
 //of of r/arns' /ur/yi /'/oi 
 J N ■ 
 
 THE FARM PLOT 
 
FARM RECORDS 
 
 53 
 
 MILK. AND LABOR RECORD 
 
LIBRfiRY OF CONGRESS 
 
 002 778 774 5 
 
 Oregon Agricultural College Bulletin 
 
 Series 1 
 
 Issued Monthly 
 
 Ne. 33 
 
 Entered at postoffice, Corvallis, Oregon, as second-class matter under act of Congress of 
 
 July 16, 1894.