178 VALUATION, DEPRECIATION AND THE RATE-BASE 
Dr. side of Ledger Cr. side of Ledger 
ist yr. To allowance for amort. and repl. $17.74 By renewals $4.00 
2nd yr. To allowance for amort. and repl. 18.66 By renewals 8.16 
3rd yr. To allowance for amort. and repl. 19.31 By renewals 12.65 
4th yr. To allowance for amort. and repl. 20.09 By renewals 17.64 
sth yr. To allowance for amort. and repl. 19.89 By renewals ~~ 23.34 
Totals $95. 69 $65.79 
Balance 19.90 
Balance $19.00 
6th yr. To allowance for amort. and repl. 19.64 By renewals $21.97 
7th yr. To allowance for amort. and repl. 19.69 By renewals 21.16 
8th yr. To allowance for amort. and repl. 19.34 By renewals 20. 54 
oth yr. To allowance for amort. and repl. 20.41 By renewals 10.73 
roth yr. To allowance for amort. and repl. 20.44 By renewals 18.31 
Totals $110.42 $101.71 
Balance 17.7% 
In actual bookkeeping the account would have been balanced 
every year. The amount available for amortization at the end 
of the fifth year should be about $19.90 and at the end of the 
tenth year about $17.71. 
e. The amortization and replacement account, in the case of 
the Equal Annual Payment Method, if amortization be esti- 
mated during the actual life of each article (plan B, Table 10) 
and the balance is applied at the end of each year to retire 
capital, would show: 
Dr. side of Ledger Cr. side of Ledger 
1st yr. To allowance for amort. and repl. $15.10 By renewals $4.00 
2nd yr. To allowance for amort. and repl. 17.46 By renewals 8.16 
3rd yr. To allowance for amort. and repl. 19.65 By renewals 12.05 
4th yr. To allowance for amort. and repl. 17.30 By renewals 17.64 
sth yr. To allowance for amort. and repl. 0.40 By renewals 23.34 
Totals $88.91 $65. 70 
Balance o 23.12 
By Balance $23.12 
6th yr. To allowance for amort. and repl. $20.30 By renewals = $21.97 
7th yr. To allowance for amort. and repl. 20.60 By renewals 21.16 
8th yr. To allowance for amort. and repl. 21.10 By renewals 20. 54 
oth yr. To allowance for amort. and repl. 19.70 By renewals 19.73 
roth yr. To allowance for amort. and repl. 18.30 By renewals 18.31 
Totals $122.82 $101.71 
Balance 21.11