Archive | Farms

Capital and Revenue Expenditure | Farm Business

After reading this article you will learn about the capital and revenue expenditure of a farm business. Allocation and receipt under Capital and Revenue is important when property is improved there are distinction made between: 1. Permanent improvement. 2. Current improvement. Permanent improvement appears in B.S. Current expenditures appear in Profit and Loss Accounts Revenue […]

3 Main Types of Cash Books | Farm Business

This article throws light upon the three main types of cash book that can be maintained in a farm business. The types are: 1. Cash Book with Cash and Discount Columns 2. Cash Book with Cash and Bank Columns 3. A Cash Book with Bank and Discount Column 4. Petty Cash Book. 1. Cash Book […]

Financial Test Ratios & Farm | Accounting

This article throws light upon the three financial test ratios used to find out the state of profitability in the farm business. The financial test ratios are: 1. Cost Ratios 2. Capital Ratios 3. Income Ratios.  1. Cost Ratios: These show the relationship between costs and returns. Cost ratios are averages and their magnitude reflecting […]

Cost Accounting & Farm Business | Accounting

This article will help you to maintain cost accounting records for your farm business. Meaning of Cost Accounting: In any business where production of goods, services, or processing of raw material is undertaken the maintenance of the cost of production is very crucial. In the field of crop production working out of the cost of […]

7 Main Factors which affect Farm Income

This article throws light upon the seven main factors which affect farm income. The factors are:- 1. Size of Farm 2. Rate of Production 3. Choice and Combination of Enterprises 4. Intensity of Cultivation 5. Labour Efficiency 6. Input Output Ratio 7. Capital Efficiency. Factor # 1. Size of Farm: There are two main sources […]

Maintaining Accounts of Your Farm Business

After reading this article you will learn about maintaining accounts of your farm business. Book-Keeping: In agricultural business management the role of farm records. Book keeping, maintaining accounts and analysis of the records of the farm is of immense importance because business should reveal what the entrepreneur has incurred as cost, what return is he […]

Valuation of Assets and Liabilities of a Farm | Farm Business

After reading this article you will learn about the valuation of assets and liabilities a farm. Valuation of Assets: 1. Plant and Machinery: In case of agri-business activities processing is an important function for which plants and machinery are installed. The valuation of these assets should be done by an engineer who checks the cost […]

3 Key Aspects of a Farm | Farm Planning

This article throws light upon the three key aspects of a farm. The aspects are: 1. Human Aspects 2. Physical Aspects 3. Financial Aspects. 1. Human Aspects: (i) Goals of Farm Family: Scope for a change, i.e., family satisfaction and an additional business approach to achieve both family satisfaction and profit maximization. The farmer’s family […]

Management Exercises and Final Decision on Farm

This article throws light upon the five main management exercises before taking final decision on farm. The management exercises are: 1. Appraisal of Farm Resources 2. Appraisal of Land Resources 3. Appraisal of Capital Resources 4. Entrepreneurial Appraisal. Management Exercise # 1. Appraisal of Farm Resources: The basic aim on commercial farms are the minimization […]

3 Important Capital Assets Required in a Farm

This article throws light upon the three important capital assets required in a farm. The capital assets are: 1. Farm Buildings 2. Irrigation 3. Farm Machinery. Capital Asset # 1. Farm Buildings: Livestock need to be protected from the in-clemencies of weather. If the livestock is kept in the open it shall require extra energy […]