Jasper Republican, Volume 2, Number 16, Rensselaer, Jasper County, 31 December 1875 — Keeping Farm Accounts. [ARTICLE]

Keeping Farm Accounts.

There are difficulties in the keeping of farm accounts in such a way as to show the exact profit or loss in farming that do not occur in keeping the accounts of most other kinds of business. It is easy to state the general principles that should be observed, but not so easy to apply them in the details of practice. The farm, of course, should be charged with the capital invested, and with all outlays, and credited with everything received'in return. Suppose I buy a farm with suitable buildings upon it, Which, with the necessary stock and farm implements, costs $5,000. That sum should be charged to the debtor side of the account. All sums paid for labor, seed, fertilizers, etc., should also be entered in the debtor column. So far it is all easy, entering the credits it is not always easy to determine the value of the returns received. If, at the end of the year, the farm, in consequence of the improvements made upon it, or from any other cause, is worth more than at the beginning, the increase should be credited hud go to swell the estimate of profits, but frequently it is difficult to determine the extent of the increase of value. The same may be said of theitiej'ease of the value of stock remaining dn the farm. There are many items of ipcome which are difficult to estimate, and some of which are commonly overlooked altogether. The farm should be credited with house-rent such a sum as the farmer would have to pay for the use of a house like his own, if he were compelled to hire one. The use of his dwelling is legitimately a part of the income of the farm. The vegetables from his garden, the fruit from his orchard, the milk, butter and cheese from his cows, the eggs from his poultry and the honey from his hives, consumed in his family, are as much a part of the income of his farm as is the money received for the produce sold, and should be credited to the farm at their market value. It is not, however, easy to keep a correct account of these little matters, but we believe that aft' honest and persevering attempt to do so for a year or two will convince any farmer who shall try it for the first time that he had previously no correct notion of the cost of living nor of the profit of farming. —New Era.