It is desirable that accounts be balanced at least once each week in order that errors and omissions may be avoided. In balancing accounts, totals of all columns may be inserted in small pencil figures, which, if not erased, make it unnecessary to repeat the addition at the end of the accounting period. A test of the accuracy of such records is as follows:

Deposits minus withdrawals = bank balance

(This must agree with the check book and with the bank-book balance minus the checks not yet presented.)

Receipts minus expenditures = cash on hand

Balance in the charge accounts = amount owing Total of all subdivisions of expenditures = total of expenditures in the cash account, plus produce, plus balance in the charge account.

To pass to a new page, the totals are entered at the foot of the completed page and again at the top of the new page in the corresponding columns, the word forward being written in the itemization column on each page.

To Close Accounts

Accounts may be closed monthly or yearly according to whether it is desired to compare the records of: (1) different months of the same year; (2) corresponding months of different years; or (3) yearly totals. At the end of each accounting period, however, the old account should be closed by entering, preferably in red ink, the bank balance in the withdrawals column and the cash balance in the expenditures column of the cash account, and by then obtaining the totals of all the columns. The same balances should be carried forward to the deposits and the receipts columns, respectively, of the new account, as shown in form 3.

Summaries For Comparison

Monthly or annual summaries may be arranged in the following form:

As an example, on pages 183 to 189 are found entries necessary to record the following facts in the three types of accounts:

On May 1, 1916, the bank balance was $285.46 and the cash balance $17.64. Bought from A. B. Jones on account 6 pounds of butter at $.35 a pound, $2.10; 2 bushels of potatoes at $1.00 a bushel, $2.00; 10 pounds of sugar at $.08 a pound, $.80.

May 2, paid rent by check, $30.00; bought for cash from L. K. Harvey, 3 dozen eggs at $.22 a dozen, $.66; received check for $50.00 from F. A. Brown for board and deposited it; received from J. Williams, salary, $30.00, of which $20.00 was deposited and $10.00 retained in cash.

May 3, paid account of May 1 with A. B. Jones, $4.90.

May 5, bought 9 yards of dress goods at $1.25 a yard, $11.25; gathered garden vegetables worth $.20 for home use; paid $2.00 for magazine subscription to May 1, 1917.

By checking these accounts according to form 3, the following results are obtained:

Bank Account:

Deposits................................ $355.46

Withdrawals............................ 30.00

Expenditures:

Shelter................................... $ 30.00

Miscellaneous:

Total............................................ $ 49.01

Form 1

(Left-hand page.) The simplest form in which an account can be kept is one that records merely receipts and expenditures. The first and last lines of each page are reserved for the totals, which are carried from the bottom of one page to the top of the next page.

Form. 1. - (Right-hand page.) Charge accounts are not entered until paid. Subtotals are made in small pencil figures when the account is checked.

Form 2

(Left-hand page.) A type of account that readily gives an analysis of expenditures. Charged items are entered first in the right-hand column of charge accounts and, when paid, in the expenditure column and in the left-hand column of charge accounts.

Subdivision Of Expenditures

Form 2

(Right-hand page.) Subdivisions under miscellaneous depend on individual requirements.

Cash Account

Form 3

The bank account is separated from the cash account in this form, but the expenditures column includes payment made by check as well as in cash.

Charge Account

Form 3

The charge account in this form differs from the charge account in Form 2 in having an itemization column separate from that of the cash account. The entries in the two forms are identical.

Produce

Form 3

In some cases it is desirable to know to what extent the family has been supplied with produce from the farm or garden. It is difficult to keep an accurate account of produce, but at least a fair estimate of such income can thus be made.

Food

Form 3

If more subdivisions than can be accommodated on one page are desired, a separate page of columns may be ruled for each subdivision. This necessitates the entering of dates on the proper page of subdivisions as well as in the cash account, the charge account, or the produce account. Subdivisions are determined by the individual need.

Shelter

Form 3

The number of subdivisions is limited only by the space on the page.

Clothing

Form 3

A separate column may be reserved for each member of the family; or expenditures may be classified according to the type of clothing, for example, dresses, suits, underwear.

Miscellaneous

Form 3

Subdivisions under this heading should be those that will best serve the individual.

References

Frederick, Christine. The New Housekeeping. 1913. Pattison, Mary. Principles of Domestic Engineering. 1915. Sheaffer, William Adam. Household Accounting and Economics. 1916. Bradford, Edith Fleming. Household Accounts. Cornell Reading Course for the Farm Home, Bull. 110. 1916.