And the Office-man’s View-

Those D Returns!

And the Office-man’s View- Point

NO doubt there are times when the plantation manager questions the necessity of the multifarious returns he compiles and forwards to the office of his company. Na turally he must obey instructions—his not to reason why—but, perhaps, it may be of a little interest if it is shown just why these are required. It may also help him to bear with toleration the insatiable demands of his office for statistical information which, after all, is not for the sake of keeping the staff busy.

The management of native labour, prac tical knowledge and economical running of a plantation are excellent attributes, but the furnishing of accurately compiled re turns is also of great importance, for it is only from these that the profitableness or otherwise of an undertaking can be ascer tained.

In the books of the plantation company all expenditure must be allocated to some account. Just at this point one may men tion that, for accountancy purposes, expen diture falls into two headings, that of capi tal and revenue. Capital expenditure is that incurred for the purpose of increasing the earning capacity of the business. Reve nue expenditure is that incurred for the purpose of carrying on the business and maintaining the fixed assets in a state of working efficiency.

Prom the returns compiled by the plan tation the allocation is made and, conse quently, the importance of their accuracy will be recognised, otherwise the books of

the company may reveal an entirely false position.

On a plantation, after a time, trees are found in different stages of development.

At this point the initial accounts reclassify themselves, so that revenue expenditure, on a bearing area, must be distinguished from capital expenditure, on the immature por tion of the plantation.

It follows that the cost of all units em ployed in actual developmental work is regarded as capital expenditure, while that incurred in the harvesting operations, and general working of bearing areas, is classed as revenue expenditure.

In what may be termed the general costs, such as transport, repairs, maintenance, rations, etc., it may be found difficult to apportion equally between the two areas.

The following suggestion may prove help ful. From the Distribution of Labour Book figures can be obtained showing the number of units employed on bearing and non-bearing areas. The general expenses can then be distributed between the num ber of units employed in each, in propor tion to the total number employed.

Consequently, it will be seen that hap hazard allocation of labour and expenses on the returns renders difficult the clear presentation of the position at the end of a working period.

Of no less importance is the accurate compilation of other returns of a sundry nature —health, livestock, rainfall, etc.

Space does not permit of giving these the attention they deserve. However, one would like to see far more importance placed upon rainfall records which, if taken over a period of years, might reveal some startling facts upon the bearing— periodical heavy fall, or apparent slacken ing. It is indeed doubted if on many plan tations these rainfall returns stretch over a period of years sufficiently long to justify a warrantable comparison of rainfall and nutfall. Again, if the comparison was made, the authenticity of the figures sup plied could reasonably be questioned.

Very often, the office man has to make a wild guess from the returns of what is intended by certain allocations or statistics.

Any local knowledge he possesses may put him right—and, then, it may not. Should a difficulty confront the “man on the land,” the custom appears to be to leave it to the office. Considerable time elapses and very much correspondence is exhanged ere the matter is adjusted—rarely quite satisfac torily, and never without causing incon venience.—G.M.R.

Among dividends declared during the month were W. R. Carpenter and Co. (Solomon Islands) Ltd.: Half-yearly pre ference at 8 per cent, per annum, less 22½ per cent, statutory deduction, payable December 1.