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FARM aCCOUNTS

Junior cert business studies

TermDefinition
Reasons why farmers keep accounts To find out if the farm is making a profit or a loss and to see how much this is=
Drawings Farmers can withdraw money from the business for their own use before the profits are known. This is referred to as drawings and a record of this amount must be kept in order to have a complete and accurate account of how the farm operates=
Capital Expenditure Capital spending is the purchase of a fixed asset. Improving land is usually a “once off” spending and is shown on the Balance Sheet=
Revenue/Current Expenditure All regular spending is considered revenue e.g. esb bills, insurance etc=
Current Income Grants or payments received by the government or the EU can be classified as sources of current finance or as sources of long term finance.=
Farm Accounts Most farmers will keep an Analysed Cash Book to record daily receipts and payments=
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