The following trial balance was extracted from the books of Mr. Charles Msafiri as at 30 April 2001.
|
Sh.
|
Sh.
|
|
Fixed assets
Land
Buildings
Motor vehicles
Farm implements
Current assets
Pesticides 1 May 2000
Cashew nuts 1 May 2000
Coconuts' 1 May 2000
Animal feed 1 May 2000
Debtors
Cash in hand and at bank
Purchases
Livestock
Pesticides
Medicine
Seeds
Livestock fattening formula
Sales
Cashew nuts
Coconuts
Livestock
Crop expenses
Labour
Other direct expenses
Livestock expenses
Medicine
Labour
General expenses
Creditors
Loan
Bank charges
Capital
|
4,000,000
800,000
1,780,000
900,000
170,000
896,200
1,687,500
300,700
520,800
1,160,100
2,000,000
617,800
130,800
92,500
220,000
538,000
118,000
247,000
128,800
71,400
20,200
________
16,399,800
|
3,200,900
1,430,000
3,900,000
798,300
3,800,000
3,270,600
16,399,800
|
You are given the following additional information:
(1)
|
Stocks as at 30 April 2001 were:
|
Sh.
|
|
Livestock
Cashew nuts
Coconuts
Pesticides
|
1,200,000
640,000
1,506,100
120,700
|
(2)
|
Drawings
|
Sh.
|
|
Livestock
Coconuts
Cashew nuts
|
42,800
19,100
33,700
|
(3) Depreciation is to be provided for at the rate of 20% and 10% per annum for motor vehicles and farm implements respectively on the book values. Buildings to be depreciated at 2% per annum on cost.
(4) The bank interest is 15% per annum on the loan. The interest for the current year has not been paid. The loan of Sh. 3,800,000 was used as follows:
(5) At the end of the year Sh. 19,100 was paid for medicine which had not been delivered by 30 April 2001.
Required:
(i) Trading and profit and loss account in columnar from for the year ended 30 April 2001, showing profit/loss on crop, livestock and total profit.
(ii) General profit an loss account showing the profit/loss from (i) above and net Profit after charging depreciation and bank charges. (2 marks)
Balance sheet as at 30 April 2001.
Three advantages the farmers may gain by adopting and implementing farm accounting and proper record keeping as a standard practice.