Week 1-9 JSS3 AGRIC
Week 1-9 JSS3 AGRIC
Week 1-9 JSS3 AGRIC
WEEK 2
2. Farm inventory: This is the record of all items in the farm. These items
include tools and equipment. Farm inventory can also contain the date of
purchase of the equipment and their description.
3. Production records: This is the record of all farm produce on the farm. This
record is usually prepared every week and then summed up at the end of the
month and at the end of the year. It helps the farmer to keep track of how
well the farm is doing.
4. Consumption record: This shows the major farm produce consumed by the
farmer, his family and workers. This enables the farmer to know the items
taken out of the farm without payment.
5. Sales record: This is the record of all sales made from farm produce. It
shows the income realized from the sales of farm produce, including the
amount and the quantity sold.
6. Profit and loss account: This is the record that shows the profit made by the
farm and the loss incurred on the farm. It records sales (income) and the
expenditure (expenses) made at the end of the year
7. Input record: This is a record used to keep track of agricultural inputs such
as fertilizers, seeds, food implements etc. It also contains the amount each
input is bought.
WEEK 3
BOOKKEEPING
This is the process of recording, analysing, and interpreting the financial
transaction of a business in agriculture. The transactions include purchases, sales,
receipts, and payment by an individual person or an organization/ cooperation.
IMPORTANCE OF BOOK KEEPING
Every business organizations keep record of their financial transactions.
Therefore the importance of book keeping becomes important for the following
reasons:
1. It helps to determine the profitability of a business.
2. It shows both assets and liabilities of the business.
3. It provides permanent records for all financial transactions.
4. It shows the income realized and also the expenditure spent in running the
business.
5. It provides a means by which the finance of a business is controlled.
METHODS/TYPES OF BOOK KEEPING
There are several methods of book keeping but the most commonly used are:
1. Single- entry book keeping system.
2. Double- entry book keeping system.
Example: Write up the sales return journal of Kenny enterprises for the month of
January 26, 1992.
Jan .5----- Returned from Royal enterprises.6 bags of sugar at N20 each. 2
plates of salad at N100 each.
Jan. 26----- Returned from shakirat Nigeria Limited;
3 crates of coke at N50 each.
RETURN INWARD JOURNAL
Date Particulars Folio Detail Total
Jan.5
Jan. 26
ROYAL
ENTERPRISES
• 6 bags of
sugar at
N20
each.
• 2 plates
of salad
at N100
each.
SHAKIRAT
NIGERIA
LIMITED
• 3 crates
of coke
at N50
each.
N
120
200
150
320
150
470
TYPES OF JOURNAL
1. Sales journal: This is the type of journal used to record the daily sales of the
business.
2. Purchase journal: It is a journal for recording all purchases made in the
business.
3. Return inward journal: This is used to record all goods that customers
returned to the business due to some reasons.
4. Return outward journal: It is used to record goods that a business returned
to its supplier.
5. Sales return journal: This is a book of prime entry used to record goods
returned by customers due to some reasons. It is also known as return inward
day book.
6. Purchase return journal: The purchase return journal is a book of original
entry used to record goods returned to the supplier. Goods can be returned as
a result of damage and many other reasons.
7. General journal or journal proper: The general journal is also a book of
prime entry used to record the initial entries in a chronological order. It can
of the Nigerian stock exchange. This enables investors to know the price of
their shares as they are quoted by the NSE.
4. It encourages contract farming: Contract farming is the process whereby a
company or an agro-based industry gives out loan to the farmers to help
them produce farm products, e.g. tobacco. When the farmer harvests the
farm produce (tobacco), he sells it to the industry in order to pay back the
loan he has collected from the company. Most agro-based companies raise
their capital through the primary market of the NSE and use the money for
contract farming.
5. It provides a forum for investors, industrialists and farmers to disseminate
information.
6. It provides a market for the members of the public and the farmers to buy
shares from viable companies.
7. It provides employment opportunities to workers in the stock exchange
market especially the buyers and sellers.
8. It provides professional advice on the management of investments.
9. It increases the quality of agricultural productivity.
10.Indicator of the state of economy: Share prices tend to rise or remain stable
when companies and the economy show signs of stability and growth. A
depressed economy with financial crisis may lead to crashing of the stock
market. Therefore the movement of the share prices can serve as an indicator
of the state of a national economy.
11.It attracts foreign investors.