Question

The table below shows a farm record for Mwamuzi Farm.

Receipts			Issues
Date	Commodity/ item	Quantity	Date	Issued to	Quantity	Balance  in stock

 

1. Identify the farm record.
2. The farm received 20 bags of DAP fertilizer from Milimani Agrovet on 07/07/2018 and another 20 bags on 21/07/2018. On 28/07/2018, a gardener took eight bags of DAP and used it to plant potatoes on the farm. Enter this information in the farm record illustrated above.
3. Give one reason for keeping the farm record illustrated above in farm accounting.

Answer 1

1. Consumable goods inventory
2.   

   Receipts			Issues
   Date	Commodity/ item	Quantity	Date	Issued to	Quantity	Balance  in stock
   7/7/18	DAP fertilizer	20 bags				20
   21/7/18	DAP fertilizer	20 bags				40
   			28/7/18	Gardener	8 bags DAP	32

    
3. It provides information used for drawing Profit and Loss account and balance sheet