on since the last time he went round, he can ask the foreman in charge at what time the change of the gang was made and so get his distributions correctly. These distributions are then worked up into the time sheet, which is shown in figure 2. By comparing this with the field sheet, its use will be obvious without further explanation. It may seem that this should be unnecessary and the cost of the labor items could be ascertained from the field sheet. Where costs are worked up in the field office this may be the case, but where they are sent in to the head office of the contracting company I find it better to have a transcript made in this way of the timekeeper's work, one reason being that in walking round in the field he is not able to make carbon copies of his distribution and therefore has no spare copies that can be sent, and another being that in writing up the reports in this way he makes a check on himself and will probably pick up any small errors that he happens to have made, so that although theoretically this may seem to be a duplication of labor, I find that in practice it is a real advantage. Figure 3 shows the payroll used in connection with the timesheet, which is so like any other payroll as to call for no comment, except that I would like to call attention to the method adopted of ruling all these sheets in a similar way in sets of ten lines, a very simple and methodical arrangement but one which is very seldom thought of. By keeping each man's number on the same line all through the job and the tenth always on the heavy lines, the labor of making out these time sheets, field sheets and payrolls is very materially reduced. The cost of each distribution on the daily time sheet is worked out and entered in the column headed "For office use" and is transferred to the permanent records from these. The total of the weekly distributions is of course checked with the total of the payroll once a week. By making out the time sheet and the payroll from the field sheet and then checking the payroll from the time sheet, one circular check suffices to verify all these operations. 8 Beacon St., Boston, Mass. Job Ne 9014 ABERTHAW CONSTRUCTION COMPANY, BOSTON, MASS. At Cambridge, Mass.___TIMEKEEPER'S FIELD SHEET. କ am pm Out 7 to 8 -9 ✓✓ Supt Date Mar. 19, 19 uf Timekeeper's Name J. H. Bowmn Chuson 5 ✓✓72 Rodman Job Ne qat ABERTHAW CONSTRUCTION COMPANY, BOSTON, MASS Date Mar. 19, 1914 Sheet NL Amount of work done and materials used. 10 7/3 7 3 13 3 Job Ne go! ABERTHAW CONSTRUCTION COMPANY, BOSTON, MASS. At Cambridge, Mass. PAY ROLL From Max. 19 Page L to Mar. 25, 1914 The Income Tax Law and Farm Accounting Methods BY W. B. FINLAY, C. P. A. An interesting problem that has come up since the enactment of the income tax law bears upon the method of reporting income from farming operations. Many large ranches have excellent accounting systems designed upon approved doubleentry principles, which for the present discussion may be designated as class (a); while others, which may be called class (b), have scarcely the scratch of a pen to enable them to compute their income, much less to enable them to make a return of income for the purpose of the tax. Both classes, of course, swear to the accuracy of the return, however it is made. Class (a) takes annual inventory of stock at a fair market value, likewise of produce raised and on hand, at what time all expenses incurred and accruals applicable to the year are taken into account, from which a report of operations and net gain or loss is made, and a balance sheet is prepared as in other properly conducted business enterprises. Class (b) has no such basis of comparing one year with another; but, when it has any method at all, it ordinarily prepares a report by setting up the actual money paid out, if it can be ascertained at all, against the amount of money received, if, also, that can be ascertained, and the remainder is the amount of gain for the year. Form No. 1040, of the treasury department, which is the one upon which individual returns are made, gives the following instructions upon page 4, which are interesting in connection with this discussion: Article 11-The farmer, in computing the net income from his farm for his annual return, shall include all moneys received for produce and animals sold, and for wool and hides of animals slaughtered, provided such wool and hides are sold, and he shall deduct there from the sums actually paid as purchase money for the animals sold or slaughtered during the year. When animals were raised by the owner, and are sold or slaughtered, he shall not deduct their value as expenses or loss. He may deduct the amount of money actually paid as expenses for producing any farm products, live-stock, etc. In deducting expenses for repairs on farm property the amount deducted must not exceed the amount actually expended for such repairs during the year for which the return is made (See page 3, item 6). The cost of replacing tools |