FARM RECORDS: Farm record is an account of the various activities carried out on the farm such as farm purchases, utilization of farm inputs, number of livestock kept and equipment procured. It includes crop cultivated, seed planted, cultural activities carried out, quantity harvested.
FARM ACCOUNTS: Farm account shows the total receipt and payments made by the farm at a particular time.
IMPORTANCE OF FARM RECORDS AND ACCOUNT
|SN||FARM ACCOUNTS||FARM RECORDS|
|1||Farmers can monitor the changes in price of product bought or sold by the farm.||It gives the history of what happens in the farm from beginning to the end of the farm business|
|2||It enables the farmers to carry out the necessary planning required for the smooth running of the farm||Provides the necessary facts and figures for farm planning and budgeting|
|3||It shows the financial weakness / strength of the farm||It helps to determine the level of profit or loss made by the farm|
|4||It helps to show the value of assets and liabilities of the farm||It enables the farmer to obtain loans from the bank|
|5||Fraudulent practices on the farm can be detected||Creates room for farm evaluation in order to determine the farmers management skill|
|6||Certain management decision like whether to continue or discontinue with a section of the farm can be made|
TYPES OF FARM RECORDS
i) Income and expenditure or receipts and payment or cash record
ii) Animal valuations
iii) Farm diary
iv) Farm inventory or tools and properties
v) Profit and loss account
vi) Yield or production record
vii) Labour records
viii) Farm input utilization record
ix) Sales record
x) Purchase record
xi) Crop record book
FEATURES OF FARM INVENTORY RECORDS
i) It is a record which contains records of all items in the farm, that is all assets and liabilities in the farm.
ii) Assets include cash in hand and at bank, land, crops, livestock, fixtures etc.
iii) Liabilities include loan payments and interest on loans.
iv) It enables the farmer to obtain bank loans.
v) It also shows the state of each equipment and its value.
FEATURES OF PRODUCTION RECORDS
i) It shows the yields of crops cultivated on the farm
ii) It also reflects the produce from livestock and poultry.
iii) It can be used in breeding, selection and in other areas.
TYPES OF FARM ACCOUNTS
i) Expenditure / Purchase Accounts: This account details cash outflow on farm activities. Expenses like tractor repairs, rent payment, salary etc.
ii) Income / Sales Account: Cash inflow of sales of farm produce is recorded in this account.
iii) Profit and Loss Account: This account shows the difference between income and expenditure to determine if the farm is making profit or lose.
iv) Balance Sheet: Balance sheet is a statement of the assets, liabilities, and capital of the farm at a particular point in time, detailing the balance of income and expenditure over the preceding period.
For further reading: Graduate Farmer