Reference no: EM13922111

The following trial balance was extracted from the books of Mr. Charles Msafiri as at 30 April 2001.

Sh.	Sh.
Fixed assets Land Buildings Motor vehicles Farm implements Current assets Pesticides 1 May 2000 Cashew nuts 1 May 2000 Coconuts' 1 May 2000 Animal feed 1 May 2000 Debtors Cash in hand and at bank Purchases Livestock Pesticides Medicine Seeds Livestock fattening formula Sales Cashew nuts Coconuts Livestock Crop expenses Labour Other direct expenses Livestock expenses Medicine Labour General expenses Creditors Loan Bank charges Capital	4,000,000 800,000 1,780,000 900,000 170,000 896,200 1,687,500 300,700 520,800 1,160,100 2,000,000 617,800 130,800 92,500 220,000 538,000 118,000 247,000 128,800 71,400 20,200 ________ 16,399,800	3,200,900 1,430,000 3,900,000 798,300 3,800,000 3,270,600 16,399,800

You are given the following additional information:

(1)

Stocks as at 30 April 2001 were:	Sh.
Livestock Cashew nuts Coconuts Pesticides	1,200,000 640,000 1,506,100 120,700

(2)

Drawings	Sh.
Livestock Coconuts Cashew nuts	42,800 19,100 33,700

(3) Depreciation is to be provided for at the rate of 20% and 10% per annum for motor vehicles and farm implements respectively on the book values. Buildings to be depreciated at 2% per annum on cost.

(4) The bank interest is 15% per annum on the loan. The interest for the current year has not been paid. The loan of Sh. 3,800,000 was used as follows:

(5) At the end of the year Sh. 19,100 was paid for medicine which had not been delivered by 30 April 2001.

Required:

(i) Trading and profit and loss account in columnar from for the year ended 30 April 2001, showing profit/loss on crop, livestock and total profit.

(ii) General profit an loss account showing the profit/loss from (i) above and net Profit after charging depreciation and bank charges. (2 marks)
Balance sheet as at 30 April 2001.

Three advantages the farmers may gain by adopting and implementing farm accounting and proper record keeping as a standard practice.