Agricultural relief: Agricultural relief

The nature of capital and income

Bibliographic data

Multivolume work

Identifikator:: 1831932415

Document type:: Multivolume work

Title:: Agricultural relief

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Collection:: Economics Books

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Volume

Identifikator:: 183193440X

URN:: urn:nbn:de:zbw-retromon-232093

Document type:: Volume

Title:: Agricultural relief

Volume count:: Pt. 3

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Scope:: III S., S. 181 - 253

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Multivolume work

Structure type:: Chapter

Title:: Statement of hon. J. Kehoe, representing Burley Burley Tobacco growers cooperative association, Maysville, Ky.

Collection:: Economics Books

Sec. 3] CAPITAL AND INCOME ACCOUNTS 261 Capitan Account AT END oF YEAR 1903 Assets Liabilities Factory . . . . -° $279,500 Bonds . . . - . $100,000 Repair fund . . . . 20,500 Capital and surplus . 200,000 $300,000 $300,000 INCOME ACCOUNT DURING YEAR 1903 Capital Source Income Outgo Net Factory Product . $40,000 Running expenses $15,000 + $25,000 Repair fund Interest New invest- received 500 ment . 10,000) Interest re- — 10,000 invested . 500 Bonds Interest . 5,000 — 5,000 Capital and Dividends 10,000 — 10,000 surplus $40,500 $40,500 000 Here we see that the repair fund has absorbed in outgo another $10,000 of new investment, and that it has yielded an income of $500, which, however, has been immediately reinvested and appears as outgo also. The consequence is that in the capital account at the end of the year, the factory, which has depreciated now to $279,500, has, synchronously with its depreciation, acquired a repair fund enough to bring up the total value of the assets to $300,000. The value to the stockholders, therefore, remains stationary at $200,000, on which amount they have received their stand- ard income of $10,000. § 4 During the next year, We shall suppose, the extraor- dinary repairs again need to be made. Inasmuch as during this year the plant has continued to depreciate, the special repairs will amount, approximately, to $31,500, whereupon the repair fund is sold and the cash employed in actual repairs. The accounts for the year 1904 will then be as follows: —

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