Agricultural Science Grade 8

Topic: Record Keeping

What are farm records?
Farm records are written information on activities done on the farm, set down for remembrance
or reference.

Importance of Farm Records

Proper record keeping allows for the proper management of the farm. The farm manager is able
to examine the operations in each enterprise of the farm; thus, allowing him/ her to make
appropriate decisions for the financial success of the farm. The following are additional reasons
for farmers to keep consistent and accurate records:
 Farm records are required as legal evidence to determine the amount of income tax to
be deducted.
 Farm records are timely and reflect the current market situation; therefore, these records
are used for planning and budgeting.
 Up-to-date records can be used as proof of income and wealth when requesting a loan.

Types of Farm Records

The following are basic records which are required when managing a farm:
 Accounts Records
 Production Records
 Crop and Livestock Records

Accounts Records
The farm accounts provide farm managers with realistic information on the current financial
status of the entire farm, as well as its individual enterprises. The Profit / Loss accounts is and
the Inventory are examples of accounts records.
Profit / Loss Account: This account reflects the debit and credit transactions of the farm or its
individual enterprises. Cash earned or received is entered in the debit side of the account along
with corresponding details, such as date, item description and quantity. Cash paid out is entered
on the credit side of the account along with corresponding details. To determine whether or not
the individual enterprise or entire farm is making a profit or a loss, the total debit and total
credit are calculated. Afterwards, the difference between the total debit and total credit is found
and this produces the balance. The balance is entered on the credit side of the account, below
the last entry. A negative balance indicates a loss while a positive balance indicates a profit.
These accounts may be done monthly, quarterly, half-yearly or according to seasons/
production cycles. Additionally, to ensure accuracy, entries should be done immediately after
a transaction has been completed.

Prepared by: O. Bobb 2020. 06. 11

 Agricultural Science Grade 8

Example of a Profit/ Loss Account

Dr Receipts Cr Expenses
Unit Total Unit Total
Date Item Qty Date Item Qty
Price Price Price Price
2020.05.04 Coconut 200 $40 $8000 2020.05.29 Wages 2 per. $5000 $10000
2020.05.10 Cabbage 100 lbs $120 $12000 2020.05.02 Fertiliser 1 sack $6000 $6000
2020.05.16 Cassava 200 lbs $60 $12000 2020.05.02 Pesticide 1 bottle $5000 $5000
2020.05.16 Plantain 250 lbs $80 $20000 2020.05.16 Seedling 200 $8 $1600
2020.05.28 Tomato 110 lbs $160 $17600 2020.05.28 Utilities - - $8000
Sub-total $36600
+ Balance $33000
Total for May, 2020 $69600 Total for May, 2020 $69600
Table above shows a Profit/Loss Account for May, 2020.

Inventory: This accounts is a list of all assets, their values and in some cases the liabilities of
the farm. Assets are of two types – fixed and variable.
Fixed Assets are assets long term, they last for over 5 years. Examples include buildings,
machines and livestock. The values of fixed assets are determined by depreciation.
Variable Assets, also known as current assets, are short term, they are usually used up within
one production cycle and last for a year or less.

Example of an Inventory Account

Item Quantity Date of Purchase Value

Land 10 acres 1995. 06. 15 $280,000
Building 1 1995. 06. 15 $300,000
Tractor 1 1998. 08. 16 $4,000,000
Disc Plough 2 1999. 03. 12 $320,000
Disc Harrow 1 1999. 11. 14 $108,000
Seed Planter 1 2001. 12. 05 $85,000
Harvester 1 2002. 02. 02 $250,000
Total $5,343,000
Table above shows an Inventory Account

Prepared by: O. Bobb 2020. 06. 11

Agricultural Science Grade 8

Calculating Depreciation using the Straight- Line Method

Suppose a brand new tractor was purchased on June 1, 2005 at a cost of $60,000. This tractor
has a service life (life warranty) of 15 years.
To know how much the value of the tractor would depreciate by each year of its service life,
the value of the tractor for each year is first calculated. The value of the tractor is calculated by
dividing the cost of the tractor by its service life.
$60,000 / 15 = $4,000
Therefore, as time progresses, each year the tractor would lose a value of $4,000. At the end of
its life service, the tractor would be worth $0.

Year Value
2005 – 2006 $60,000
2006 – 2007 $56,000
2007 – 2008 $52,000
2008 – 2009 $48,000
2009 – 2010 $44,000
2010 – 2011 $40,000
2011 – 2012 $36,000
2012 – 2013 $32,000
2013 – 2014 $28,000
2014 – 2015 $24,000
2015 – 2016 $20,000
2016 – 2017 $16,000
2017 – 2018 $12,000
2018 – 2019 $8,000
2019 – 2020 $4,000
Table above shows the yearly depreciation of the Value of a Tractor purchased for $60,000.

Prepared by: O. Bobb 2020. 06. 11

Agricultural Science Grade 8

Assignment Due: June 29, 2020

Topic: Coconut Cultivation
Make a product using coconut as the main/ a major ingredient. The product may
be either edible or non-edible.
Take pictures of you making the product from start to finish, document each step
and compile the photos into album.
There must be short descriptions attached to each photograph.
The album must include the following areas:
 Pre-Operation: You gathering your materials and preparing your work
station.
 Operation: You making the product.
 Post- Operation: You cleaning up your work station and the final product.

Note:
You may use Microsoft Word, Publisher or PowerPoint to compile your
photographs.
Titles and descriptions for each photo is necessary.
The album (softcopy) will be submitted on EDMODO via the
Assignment Portal.

Prepared by: O. Bobb 2020. 06. 11