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Farm Accounts Among the assets and liabilities of Sean and Mary Kelly, who carry on a mixed farming business, on 1/1/2005 are: Land and Buildings at €290,000; Machinery at €60,000; Electricity due €400; Value of Cattle €60,000; Milk cheque due €2,400; Stock of Fuel and Wool value of Sheep €1,800 - Leaving Cert Accounting - Question 2 - 2006
Question 2
Farm Accounts Among the assets and liabilities of Sean and Mary Kelly, who carry on a mixed farming business, on 1/1/2005 are: Land and Buildings at €290,000; Machi... show full transcript
Worked Solution & Example Answer:Farm Accounts Among the assets and liabilities of Sean and Mary Kelly, who carry on a mixed farming business, on 1/1/2005 are: Land and Buildings at €290,000; Machinery at €60,000; Electricity due €400; Value of Cattle €60,000; Milk cheque due €2,400; Stock of Fuel and Wool value of Sheep €1,800 - Leaving Cert Accounting - Question 2 - 2006
Step 1
Give three reasons why farmers should keep a full set of accounts.
Answer
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Financial Management: Keeping detailed accounts allows farmers to track their income and expenses, facilitating better financial management and decision-making.
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Regulatory Compliance: Maintaining full accounts ensures compliance with tax and regulatory requirements, allowing for accurate reporting to authorities.
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Performance Analysis: A comprehensive set of accounts provides insights into the profitability of different farming activities, helping farmers to assess performance and make necessary adjustments.