Farm Accounts II - SS2 Agriculture Past Questions & Answers - page 1

1

The following entries are sales and purchases made by Johnson and Son's farm:

Sales Farm Account:

  1. Date: June 10, 2023 Description: Sale of 200 bags of rice Amount: ₦150,000
  2. Date: July 5, 2023 Description: Sale of 50 crates of eggs Amount: ₦20,000
  3. Date: August 15, 2023 Description: Sale of 300kg of tomatoes Amount: ₦45,000
  4. Date: September 20, 2023 Description: Sale of 15 heads of cattle Amount: ₦300,000
  5. Date: October 2, 2023 Description: Sale of 400 baskets of oranges Amount: ₦80,000
  6. Date: November 10, 2023 Description: Sale of 30 liters of honey Amount: ₦25,000
  7. Date: December 15, 2023 Description: Sale of 1000kg of yam Amount: ₦60,000

Purchases Farm Account:

  1. Date: June 12, 2023 Description: Purchase of 800kg of fertilizer Amount: ₦60,000
  2. Date: July 8, 2023 Description: Purchase of 1500kg of chicken feed Amount: ₦30,000
  3. Date: August 18, 2023 Description: Purchase of 75 liters of pesticides Amount: ₦12,000
  4. Date: September 25, 2023 Description: Purchase of 4 plowing machines Amount: ₦200,000
  5. Date: October 5, 2023 Description: Purchase of 1200 seedlings of tomatoes Amount: ₦40,000
  6. Date: November 15, 2023 Description: Purchase of 20 bags of poultry feed Amount: ₦10,000
  7. Date: December 20, 2023 Description: Purchase of 500kg of yam seeds Amount: ₦35,000

These entries reflect a range of sales and purchases transactions for Johnson and Son's Farms, taking into account various agricultural products and inputs.

Use the entries to prepare a sales and purchases account for the farm.

Sales account and purchase account for Johnson and Son's Farms

Sales Farm Account:

Date

Description

Amount (₦)

2023-06-10

Sale of 200 bags of rice

150,000

2023-07-05

Sale of 50 crates of eggs

20,000

2023-08-15

Sale of 300kg of tomatoes

45,000

2023-09-20

Sale of 15 heads of cattle

300,000

2023-10-02

Sale of 400 baskets of oranges

80,000

2023-11-10

Sale of 30 liters of honey

25,000

2023-12-15

Sale of 1000kg of yam

60,000

Purchases Farm Account:

Date

Description

Amount (₦)

2023-06-12

Purchase of 800kg of fertilizer

60,000

2023-07-08

Purchase of 1500kg of chicken feed

30,000

2023-08-18

Purchase of 75 liters of pesticides

12,000

2023-09-25

Purchase of 4 plowing machines

200,000

2023-10-05

Purchase of 1200 seedlings of tomatoes

40,000

2023-11-15

Purchase of 20 bags of poultry feed

10,000

2023-12-20

Purchase of 500kg of yam seeds

35,000

These tables provide a clear breakdown of the sales and purchase transactions for Johnson and Son's Farms, including the dates, descriptions, and corresponding amounts.

2

The following entries entered into the books of Johnson and Son's farm:

  1. Revenue from Crop Sales
    • Amount: ₦2,000,000
  2. Revenue from Livestock Sales
    • Amount: ₦1,500,000
  3. Revenue from Dairy Products
    • Amount: ₦600,000
  4. Revenue from Poultry Sales
    • Amount: ₦800,000
  5. Other Agricultural Income
    • Amount: ₦200,000
  6. Cost of Goods Sold (Crop Production)
    • Amount: ₦800,000
  7. Cost of Goods Sold (Livestock)
    • Amount: ₦450,000
  8. Cost of Goods Sold (Dairy Products)
    • Amount: ₦180,000
  9. Cost of Goods Sold (Poultry)
    • Amount: ₦300,000
  10. Operating Expenses (Labor, Utilities, and Maintenance)
    • Amount: ₦550,000
  11. Marketing and Advertising Expenses
    • Amount: ₦100,000
  12. Depreciation of Farm Equipment
    • Amount: ₦90,000

These entries represent a simplified Profit and Loss Account for Johnson and Son's Farms, outlining revenue, costs of goods sold, and various operating expenses.

Use the entries to prepare a Profit and Loss Account for Johnson and Son's Farms.

Profit and Loss Account for Johnson and Son's Farms

Description

Amount (₦)

Revenue:

 

Revenue from Crop Sales

2,000,000

Revenue from Livestock Sales

1,500,000

Revenue from Dairy Products

600,000

Revenue from Poultry Sales

800,000

Other Agricultural Income

200,000

Total Revenue

5,100,000

   

Cost of Goods Sold:

 

Cost of Goods Sold (Crop Production)

800,000

Cost of Goods Sold (Livestock)

450,000

Cost of Goods Sold (Dairy Products)

180,000

Cost of Goods Sold (Poultry)

300,000

Total Cost of Goods Sold

1,730,000

   

Gross Profit

3,370,000

   

Operating Expenses:

 

Labor, Utilities, and Maintenance

550,000

Marketing and Advertising Expenses

100,000

Depreciation of Farm Equipment

90,000

Total Operating Expenses

740,000

   

Net Profit Before Tax

2,630,000

   

Income Tax Expense (Assuming 30%)

789,000

   

Net Profit After Tax

1,841,000

 

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