Farm Accounts The following were the assets and liabilities of the Moloney Family who carry on a mixed farming business on 01/01/2012: Land €400,000; Farm Buildings €150,000; Machinery at cost €73,000; Value of sheep €36,000; Value of cattle/cows €109,000; Cash in Bank €17,800; Electricity due €700; Wages due €600 - Leaving Cert Accounting - Question 2 - 2013

To prepare the Enterprise Analysis Account for 'Cattle/Milk', we structure it as follows:

Income:

• Sale of Milk: €86,000
• Sale of Cattle: €47,900
• Single Farm Payment (80% for Cattle/Milk): €12,640 * 0.80 = €10,112

Total Income: $ext{Total Income} = €86,000 + €47,900 + €10,112 = €143,012$

Less Cost of Sales:

• Stock on 01/01/2012: €109,000
• Purchases: €36,400
• Less Closing Stock 31/12/2012: €73,000

Cost of Sales Calculation: $ext{Cost of Sales} = €109,000 + €36,400 - €73,000 = €72,400$

Expenditure:

• Fertiliser: €3,350
• Electricity: €6,500
• Repairs: €14,300
• Wages: €22,900

Total Expenditure Calculation: $ext{Total Expenditure} = €3,350 + €6,500 + €14,300 + €22,900 = €47,050$

Profit Calculation: $ext{Profit} = ext{Total Income} - ext{Cost of Sales} - ext{Total Expenditure}$ $ext{Profit} = €143,012 - €72,400 - €47,050 = €23,562$

Thus, the Enterprise Analysis Account for 'Cattle/Milk' shows a profit of €23,562.

To prepare the Enterprise Analysis Account for 'Sheep', we structure it as follows:

Income:

• Sale of Wool: €1,800
• Sale of Lambs: €42,600
• Single Farm Payment (20% for Sheep): €12,640 * 0.20 = €2,528

Total Income Calculation: $ext{Total Income} = €1,800 + €42,600 + €2,528 = €46,928$

Less Cost of Sales:

• Stock on 01/01/2012: €36,000
• Purchases: (to be provided or calculated as needed)
• Less Closing Stock 31/12/2012: €29,000

Cost of Sales Calculation: $ext{Cost of Sales} = €36,000 + ext{Purchases} - €29,000$

Expenditure:

• Fertiliser: €3,350
• Electricity: €6,500
• Repairs: €7,150
• Wages: €22,900

Total Expenditure Calculation: $ext{Total Expenditure} = €3,350 + €6,500 + €7,150 + €22,900 = €39,900$

Profit Calculation: $ext{Profit} = ext{Total Income} - ext{Cost of Sales} - ext{Total Expenditure}$

In this case, the profit can be determined once the purchases amount is known.