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 means income but revenue account [...]

By |2016-08-25T16:53:50+05:30August 25, 2016|Farms|Comments Off on Capital and Revenue Expenditure | Farm Business

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 with Cash and Discount Columns: [...]

By |2016-08-25T16:53:50+05:30August 25, 2016|Farms|Comments Off on 3 Main Types of Cash Books | Farm Business

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 physical production efficiency, selection of [...]

By |2016-08-25T16:53:50+05:30August 25, 2016|Farms|Comments Off on Financial Test Ratios & Farm | Accounting
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