The LABOUR-BOOK is simply an account of the time and wages paid to persons employed in the establishment, and is carried weekly to the cash account.

The CASH-BOOK has entered into it all monies paid and received, with columns for figures referring to the page in the Ledger, Journal, Waste-Book, or Bought-Book where the particulars of the transaction are detailed.

The PETTY CASH is for small sums received in ready money, and for small payments, such as tolls, booking, letters, stamps, &c. &c., and the balances carried periodically to the Cash-Book.

SECTION V.

FARM BOOK-KEEPING.

THE correct and daily registration of matters relating to accounts is of the greatest importance to every person concerned in the transactions that result in gain or loss. Hitherto, the consideration of the absolute necessity of a correct and simple method of Book-keeping has been mainly confined to the merchant and trader; and almost all the systems that have been established and are in use, have been formed with a view to their application to commercial accounts. The increasing importance, however, that is now given to the value of ascertaining correctly the results arising from the different modes of cultivating and stocking farms, rearing cattle, &c., makes it compulsory on those who are engaged in farming occupations to be in no way behind the commercialist in the knowledge of keeping accounts. The want of an uniform method for agricultural accounts has been very generally admitted, and it is for the purpose of supplying this defect that the accompanying system has been prepared. The books that are necessary to the carrying out of this plan are:

1st, Day-Book.
2d, Invoice-Book.

3d, Labour-Book.
4th, Cash-Book.

5th, Ledger.

To these may be added certain subsidiary books, such as Petty Cash-Book, Bill-Book, House and Personal ExpenseBook, Letter-Book, Diary of Labourers' Work, &c. &c.; but as these are mere books of convenience, either to abridge the entries in any of the principal books, or for some other purpose, and can be accommodated, without any difficulty, to this system, it is deemed unnecessary to particularise them.

The principle of double entry has been applied to the accompanying system; that is, for every sum carried to the debit of any account, there is a corresponding amount placed to the credit of another account. Thus if I buy goods of A., the account representing those goods in the Ledger is debited, and A. credited; if I pay A. 1007., A. is debited, and the Cash-Book credited.

This book is intended to contain a register of all sales that are effected, entered under the date at which the occurrence takes place. The entry should be stated in the fullest and most complete manner, and should be intelligible to every one. The accompanying form shows the method in which the entries should be made; and in order to obviate the necessity of keeping a Journal, as in use among merchants, a double folio column is introduced for the purpose of posting each item; in the first place, to the debit of the personal account, and in the next, to the credit of the nominal account.

F 4

The entry of sale should be made as soon as the sale is effected, and posted to the debit in the Ledger, of the party purchasing; the folio of his account in the Ledger being placed in "debtor folio," while the account opened for each description of goods in the Ledger must be credited for the like amount, and the folio placed in the "credit folio.”

The Invoice-Book is intended to contain a register of all purchases made; and the mode of keeping this book is more fully explained in the form which we have given. The double folio column is also introduced in this, for the same purpose as stated in Subsect. I., with this difference, that the personal account is credited, and the nominal accounts are debited, with each item.

INVOICE OF PURCHASES.

Date.

1845.

Jan. 16

This book should be simply
a guard-book, made of
common blue paper; and
the invoice of goods pur-
chased should be neatly
folded into a small com-
pass, and pasted into this
space; the top edge only
being pasted down, the
invoice can at any time
be unfolded for the pur-
pose of ascertaining its
contents. On the out-
side should be endorsed
the name thus:

" HENRY SMITH,"

and the date and amount
entered against it, as
here shown.

The purchases are to
be posted to the credit
of the party of whom
they are made, and the
debit of the account
opened for the goods
purchased.

The above example is intended to represent a purchase of farming implements; and on reference to folio 6. it is seen that the party who sold the goods has credit, and at folio 4. implements, &c., are debited, for the amount of the invoice.

Subsect. III.-THE LABOUR-BOOK.

The Labour-Book is formed so as to be a register of the time any servant is engaged on each day, and the total amount due to each at the end of the week is carried into the outer column. This book should be added up every week, and the total amount paid for wages carried to the credit of the Cash-Book.

This book may be so formed as to enable the farmer to state upon what work the labourer has been employed; but if so kept, it would be necessary, to carry it out fully, to open accounts in the Ledger for each portion of the farm under different cultivation, charging each with the expenses of cultivation, cost of seed, &c.

LABOUR-BOok.

The Week ending the 4th Day of January, 1845.

Note. The weekly total is entered in the Cash-Book, with a reference to the Labour-Book folio against the entry.

Subsect. IV. - THE CASH-BOOK.

The Cash-Book is debited with all sums received, and credited with all moneys paid away; and these entries should be made at the time the transaction takes place, in order to prevent confusion and mistakes. The balance should be struck once a month, and it should agree with the cash on hand. At short intervals the entries should be posted into the Ledger.