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Egg Production Accounting5/3/2021
Farming activities now comprises not only of growing crops but also include animal husbandry, poultry farming, sericulture (silk warm breeding), pisciculture (rearing fish, floriculture (growing flowers) etc.However, in our country, farm accounting is of recent origin.A standard form of accounts for recording, fanning transactions has yet to develop.In recent years, commercial fanning has been engaging the attention of many and as a result a number of farmers are coming up.
Corporate entities are entering into the farming business in a big way. The farm accounting is a technique of using accounting data for cost and profit ascertainment of each farming activity and decision making with regard to the most profitable line of activity. The cash and credit transactions are recorded in normal manner as any other business transaction. Some examples of such transactions are: use of household capital, use of land owned by the farm household, labour provided by members of the family, consumption of output by the family etc. The direct cost clearly identifiable with a crop shall be charged accordingly. The common cost should be suitably allocated on some accepted basis, For instance, depreciation or repairs can be divided on the basis of estimation of usage by different crops. Interest on fixed loan can be divided on the basis of length of crop season etc. The business is mostly carried on cash basis and therefore, by providing analytical columns in the cash book, both on receipts and payments side, the accounting can be made very simple. A lot of money may have to be spent by the business on cleaning, leveling the land, providing drainage, irrigation facilities etc. All these expenses are termed as Land Development Expenses, and should preferable is added to the cost of land. But other costs like irrigation, services of agricultural machinery, implements or animal power depreciation, interest on capital etc. Common costs of the agricultural farms are to be suitably apportioned among the crops for which such costs were incurred. Common costs should be apportioned among the crop enterprises on the basis of usage, wherever use of assets can be quantified. The method requires the preparation of two statements of affairs one at the beginning of the accounting period and the other at the end of the accounting period. The profit or loss made by the business during a period can be ascertained by comparing the net-worth of the business on two dates, after making suitable adjustments for drawings, introduction of additional capital etc. For more details, refer Single Entry System of Accounting). The profit or loss of each such account is transferred to General Profit and Loss Account, to which common expenses of all the activities of the farm are charged so as to arrive at net profit or loss, to be transferred to Capital Account. Image Guidelines 5. Content Filtrations 6. TOS 7. Privacy Policy 8. Disclaimer 9. Copyright 10. Report a Violation Advertisements. Egg Production Accounting Download Free EBooksPlease check your email and confirm it to read insightful articles, videos and download free eBooks. Please try again. Email Address I would like to receive the free email course.
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