Sec. 6]

INCOME ACCOUNTS

133

wise included, such as clothing, watches, jewelry, and other
articles of wealth or property not contained in the other

categories.

come and outgo connected with “ ete.

n

other, and amount to $2500.
The total income of this man is therefore as follows: —

For simplicity we shall suppose that the inare
 equal to each

 

 

 

 

 

 

Income Outgo al
Profit and
| Loss
By stocks and bonds | To stocks and bonds
(money) . $2000| (money) . .$ 500 + $1500
By lease right (shelter) 100 | To lease right (money) 100 00
By furniture (use) . 50 | To furniture (money) 30| + 20
| To food (money (50)
and work of serv-By
 food (use) 150| ants (100) . 150 00
By “cash” (money) 3780 | To “cash” (money) . 4000| — 220
By servants (services) 100|To servants (money) 100 00
By clerks (personal assistance)
 500 | To clerks (money) . 500 00
| To self (assistance of
By self (money) 2000| clerks) (money) 500 | + 1500
By “ete.” (direct uses) 2500 | To “ete.” (money) 2500 00
Total net income . + $2800

 

 

These accounts may be simplified in various ways, and
without any sacrifice of logical completeness. If we are
interested only in the total net income, and not in the share
which each item of property contributes to this total, we
may omit several items which in the above accounting stand
on both sides. For instance, the cooking and serving food
was debited to the stock of food and credited to the servants.
At first sight it may appear that the wages of cook and
waitress are entered as debit both to “servants” and to
“food” and that double counting has occurred. But the
debit to food was not servants’ wages but servants’ work.