FARM REPORT AND ACCOUNT MANAGMENTa farm,various

Various types of farm records

1. Importance of farm records and accounts in managing a farm, various types of farm records needed to maintain on farm, farm inventory, balance sheet, profit and loss accounts. T 11

2. Benefits of Farm Records Planning Financial Management Farm Returns Research and Government Policies Credit Input Management

3. Limitation in Maintenance of Records Illiteracy Small size of holding Fear of taxation Complicated concepts Nature of farming

4. Records: Average Farm Land use records Permanent Deadstock Register Farm Livestock records Farm labour records Input records Feed records Crop production and disposal records Input and feed stock register Log book

5. Records: Commercial Farms Forecast register Daily Memorandum Sheet (DMS) Muster sheets Permanent Dead stock Register (PDSR) Temporary Dead stock Register (TDSR) Fertilizers and Chemicals Register Seed stock register FYM register Cattle feed register Tractor expenditure register Livestock register Farm Produce stock register Indent register Sale price register Sanction register Auction register Cash book

6. Records: Commercial Dairy Livestock register Milk production register Milk disposal register Calf feeding register Feeding schedule register Insemination register Calving register Gynecological status register Health and vaccination register Mortality register History sheet Cash book

7. Farm Accountancy Account: Summary of business transactions Accounting: recording, classifying and summarizing business transactions Accountancy: art of keeping accounts systematically Systems of Book-Keeping Single Entry Vs Double Entry Debit & Credit

8. Systems of Book-Keeping Double entry system: It is a method of recording each transaction in the books of accounts in its two fold aspects, i.e. two entries are made for each transaction in the same set of books, one being a debit entry and the other a credit entry. Single entry system: This is the system which ignores the double effect of transactions. Only personal accounts of debtors and creditors are kept and impersonal accounts are ignored altogether

9. Advantages of Double Entry System Both personal and impersonal accounts are opened Provides check on arithmetical accuracy Reduces the chance of committing errors Helps to know debtors (customers) and creditors (suppliers) from time to time Helps in preparation of balance sheet Useful to tax and legal authorities

10. Different types of accounts Personal Accounts Natural Persons: Individuals Artificial persons: Institutions Representative persons: Due accounts Real Accounts Machinery A/C Building A/C Nominal Accounts Expenses account, gain account

11. Farm Inventory Cash Assets Depreciable Assets Non-Depreciable Assets

12. Balance Sheet / NW Statement Assets Liabilities Current Current TCA TCL Intermediate Intermediate TIA TIL Long-Term Long-Term TLA TLL TA TL Net Worth or Equity = TA - TL

13. Current Assets Very liquid and short term assets Cash on hand Savings in bank Value of bonds and shares (to be realized in this year) Agricultural produce ready for disposal Stocks of paddy Eggs / birds Fruits / vegs ready for sale

14. Intermediate Assets Less liquid than current Machinery, equipments Tractors and trucks Livestocks Dairy cattle Bullocks Poultry birds

15. Long Term Assets Fixed assets: takes long time to convert into cash Land Farm buildings

16. Current Liabilities Debts to be paid in short term Crop loan Accounts payable Hand loans Money to input suppliers Annual installments of MT & LT loans

17. Intermediate Liabilities Loans & Dues for repayments (2-5 years) Livestock loans Machinery loans Unsecured loans (outstanding amounts)

18. Long Term Liabilities Loan payments in five or more years Tractor loan Orchard loan Land development loan Unsecured loans (outstanding amounts)

19. Income (Profit – Loss) Statement Income Expenditure Returns from crop output, animal products, gifts Operational expenses Labour , seeds, feeds, fertilizers, interest…etc… Gross Cash Income Total Operational Expenses Appreciation value of assets Fixed expenses Depreciation, land revenue, interest of fixed capital Total Fixed Cost Gross Income Total Cost Net Income = Gross Income – Total Cost