Farm Records: Definition,Uses And Types Of Farm Records (Records And Bookkeeping)

Table Of Contents

  • Meaning Of Farm Records
  • Uses Of Farm Records
  • Types Of Farm Records
  • Computer-Aided Farm Records
  • Benefits Of Computer-Aided Farm Records
  • Definition Of Book Keeping
  • Types Of Farm Farm Accounts
  • Meaning Of Source Document
  • Types Of Source Document
  • Journal Preparation
  • Types Of Journal
  • – Sales Journal
  • – Purchases Journal

Definition Of Farm Record

What is farm record?

Farm record is a document ( in most cases a book) that is used to keep account of different activities, events, materials etc regarding the farm operarion. Farm record is also used to record financial aspects of farm operation.

Uses Of Farm Records

(1) They help in decision making for proper management.

(2) They help to plan and implement farm business.

(3) It is useful in preparing profits & loss account.

(4) It provides information on farm history and level of production of the farm business (progress monitoring).

(5) It can help in taking adequate insurance policies by the farmer for his farm enterprise.

(6) Farm records provides useful information on taxes payable and for farm budget preparation.

(7) It provides a reliable basis for future planning.

Types Of Farm Record

(1) Farm Diary: This is a record of day to day activities of the farm. It is possible to trace weakness in the farm business. Farm diary takes care of crops, date of planting, amount of seed used, harvest date, etc.

(2) Farm Inventory: This record takes care of the livestock (types, number etc), buildings etc. It gives information on the state of the item, the ones that need replacement, repair, borrowed, or hired out.

(3) Input Records: This record gives details of the size or quantity of input utilized to the farm e.g fertilizers, feed for livestock, amount of seeds used, labour, medication, stock of livestock etc. It enables the farmer know whether he is using too much animal feed or much seeds as the case maybe, before too much losses are incurred.

(4) Production Records: This record measures the productivity of the land, and success of farming operations generally. It shows whether a particular livestock is doing well or not.

(5) Scale Records: This record tells a farmer how much he is making. It helps the farmer not to spend too much and also help him in adequate farm planning.

(6) Consumption Records: Not all produced are put to sale. This records the quantity harvested and consumed by the farmer and his family, or given out, but not sold.

(7) Profit And Loss Accounts: Thsi record has two sides. The left side has to do with liablilities and payments (purchased and expenses) While the right hand side is concern with Assets and Revenue (Sales and Receipts). This record is opened at the beginning of the farm year of cropping season, and closed at the end of the period.

Computer-Aided Farm Records

Computer-aided farm records is the computer processed information on farm records which takes the form of date, text, sound, numbers or figures, pictures etc. It is used in electronic device to transact farm business and keep records of farm activities.

Benefits Of Computer-Aided Farm Records

(1) More detailed information is provided.
(2) Information capacity is very high.
(3) Retrieval of information is easy.
(4) Information transfer is less stressful.
(5) It minimizes the discomfort of file movement.
(6) It aids planning for the future,
(7) Loss or missing files/records is eliminated.

Summary On Farm Records

Farm record is defined as the records of transactions of farm businesses and activities.

Farm inventory, farm diary, input records, production records, scale records, consumption records, profits and loss accounts are the types of farm records.

Computer-aided farm records is the computer-processed information on farm records which takes the form of date, text, numbers or figure, sound, pictures etc. It is used to transact farm business and keeps records of farm activities.

What Is Book-Keeping In Agriculture

Book-keeping is the systematic way of recording all financial transactions in any business enterprise. It is the act of keeping financial records or accounts of a business so as to show the expenditure earnings, and finacial state of the enterprise.

Types Of Farm Accounts

(1) Cash Accounts: This account involves all the money that is coming into and going out of the farm business.

(2) Profit And Loss Account: This type of account shows the relationship between the input into alarm business and it’s out put. It shows whether the farm is operating at a profit, loss or breaking even. The account book has two sides, the left side is expenses, while the right hand is sales income.

Source Document

Source documents are original document which provides recorded information about transactions.

Types Of Source Document

1. Sales invoice
2. Purchase invoice
3. Return inward
4. Return outward.

1. Sales Invoice: This record is important both for the seller and the consumer. It is a document made by the business man disposing the goods (seller) and sent out to the buyer. It gives complete details of the goods supplied, the quantity, price, value, it bears the customers name, phone number, address, date etc.

2. Purchase Invoice: This is a document containing detailed information about the goods received by the buyers. It indicate what have been purchased, what quantity and for what prices.

3. Return Inwards: These are faulty or wrong goods already sold to the customers but returned back to the business or sellers. There is payment for faulty goods.

4. Return Outwards: This has to do with the faulty or wronged goods that the business return back to the suppliers due to certain flalos, the amount owned them reduces. This is because there should be no payment for the wrong goods.

Journal Preparation

Journal is the original document for making entries to course of the day to day business transactions and in recording all types of transaction.

Types Of Journal

(1) Sales Journal
(2) Purchases Journal

(1) Sales Journal: The sale journal is the one of the day books used for recording credit sales of goods. It is used to record all of the company sales on credit cash, Sales are record in the case receipts journal.

(2) Purchases Journal: Purchases journal is the main entry book which is used to record credit transaction (credit purchased) for resalable purchases. It records only all credit purchases of goods while trade cash purchases are recorded in cash book.

Summary On Book-Keeping

Book-keeping is the systematic way of recording all financial transactions in any business enterprise.

Cash account And Profit & Loss account are the types of farm accounts.

Source documents are the original document which provides recorded information about transactions. Types of Sourec Documents are Sales invoice, purchase invoice, return inwards and return outward.

Journal is the original document for making entries to course of the day to day business transactions . The types are journal are Sales Journal And Purchases Journal.

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