Leaving Cert Accounting Farm Accounts: Farm Accounts

Among the assets

Question

Farm Accounts

Among the assets and liabilities of Tom and Anne Barry, who carry on a mixed farming business, on 1/1/2008 are: Land and Buildings at €510,000; Machinery at €90,000; Electricity due €450; Value of Cattle €680,000; Milk cheque due €2,600; Stock of Fuel €83 and Value of Sheep €20,000.

The following is a summary taken from their cheque payments and lodgements books for the year ended 31/12/2008.

Lodgements

Balance 1/1/2008	€
Milk	29,000
Sheep	16,000
Cattle	64,000
Lambs	2,500
Single Payment – Sheep	14,300
Single Payment – Cattle	1,000
Wool	800
Forestry premium	1,900
Six months interest from 4% p.a. on 30/06/2008	€
3% Investment Bond	900

Total	€132,200

Cheque Payments

€
Fertiliser	2,500
General farm expenses	1,500
Dairy feed	2,200
Light, heat and fuel	9,000
Cattle	20,000
Vet fees	1,600
Veterinary fees and medicines	2,200
Bank loan interest	1,680
4% p.a. repayment on 30/04/2008	9,450
Balance 31/12/2008	€
132,200

The following information and instructions are to be taken into account:

(i) Value of Livestock on 31/12/2008 was	€
Cattle	€84,000
Sheep	€94,000

(ii) Farm produce used by the family during the year – Milk €900; Lamb €500.

(iii) General farm expenses, fertiliser, and veterinary fees and medicines are to be apportioned 70% to 'Cattle and Milk' and 30% to 'Sheep'.

(iv) Other expenses are to be apportioned 80% to farm and 20% to household.

(v) Depreciation to be provided on the following:

Machinery at the rate of 10% of cost per annum.
Land and Buildings at 2% per annum. (Land at cost was €300,000).

(vi) Veterinary fees and medicines include a cheque for family health insurance for €1,100.

(vii) On 31/12/2008 a Milk cheque was due €1,600; Creditors for fertilisers amounted to €500 and Stock of Fuel was €600.

You are required to:

(a) Prepare a Statement of Capital for the farm on 1/1/2008. (20)

(b) Prepare an Enterprise Analysis Account for 'Cattle and Milk' and 'Sheep' for the year ended 31/12/2008. (20)

(c) Prepare a General Profit and Loss account for the year ended 31/12/2008.

Explain your answer. (12)

(d) Prepare the Barrys' Drawings Account. (8)

Prepare a Statement of Capital for the farm on 1/1/2008

Assets

Liabilities

Total Assets

Total Liabilities

Capital

Prepare an Enterprise Analysis Account for 'Cattle and Milk'

Prepare an Enterprise Analysis Account for 'Sheep'

Prepare a General Profit and Loss account for the year ended 31/12/2008

Income

Expenditure

Net Profit

Prepare the Barrys' Drawings Account

Barrys' Drawings Account

Join the Leaving Cert students using SimpleStudy...