Position of Capital Items.

Wanganui Chronicle, Volume 74, Issue 114, 16 May 1931, Page 8 (Supplement)

Position of Capital Items.

The first budget, naturally, will represent more difficulties in compilation than subsequent budgets. When several budgets have been made, a valuable comparison will be available every year. An example of a budget, in skeleton form, is attached to the bulletin, and supplies a practical idea of the lines 011 which to work. A warning is given against the inclu sion of capital items in the budget. If these arc included, the budget is likely to be very misleading. It is, therefore, suggested that any such items be summarised in a separate statement. This should show: (1) Estimated receipts, from the sale of land, implements, machinery, and the sale of any livestock, which is in the nature of a realisation of a portion of the usual stock carried on the farm. (2) Estimated expenditure, such as purchase of additional land, machinery or implements, or the purchase of livestock for the purpose of increasing the normal carrying capacity of the farm more or less permanently.