The following is the trial balance of Scem Farm on 31st Dec 2018:

Debts Land and buildings Farm machine Sundry debtors Cash in hand Stock 1.1.2018 Growing crops, wheat seeds and fertilizers Livestock Feeding materials Manager’s salary Farm labour Office expenses Crop expenses Livestock purchases Livestock expense Farm house expenses Staff meals Repairs on machinery Interest on loan (crop) Tool and implements

210,000 108,000 30,000 26,000 20,000 25,000 6,000 6,000 5,000 4,000 10,000 12,000 28,300 12,000 500 1,000 4,000 2,500 500,000

Creditors Capital Profit & Loss account Loan Provision for depreciation Sale of wheat Sale of livestock Managers personal a/cs Bank overdraft Sandy creditors

270,00 10,000 60,000 60,000 30,000 35,000 75,000 2,000 3,000 15,000 500,000

Additional information

1.Stock on 31.12.2018

Growing crops, wheat, seeds and fertilizers Livestock Tools and implements Feeding materials

Shs.’000’ 10,000 40,000 2,000 1,000

2. Depreciation on tool and implements is to be apportioned between crops and livestock equally.
3. The livestock is charged with 20% of manager’s salary and staff meals.

Required:

Prepare Crop Account, Livestock Account, Profit and Loss Accounts and a balance sheet as at that date.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below crop and Livestock Ac Opening stock Cro... View the full answer