Page 303 - Agriculture_Form_Three

Agriculture for Secondary Schools

Activity 13.8
With assistance of the teacher, pay a visit to your school or nearby farm office.
1. Obtain statements of buyers’ account and farm’s bank statements and study
them carefully.
2. Outline lessons you have learnt from such statements.

3. Share with your class the lessons you have learnt.

Agreed contracts
All agreements with customers or suppliers should be in writing, preferably in the
form of contract. The agreements include price, delivery and payment terms. This
record is important for not only managing relationships with the farm business and
individuals but also organisations that provide services or goods or that buy the farm
products on contract basis. The agreements in form of contract should be witnessed
by a legal officer so as to be lawfully accepted.

Activity 13.9
1. With assistance of the teacher, get samples of contracts involved in selling or
buying goods and/or services and go through them thoroughly in groups.
2. Outline the major features of the contracts and lessons learnt from the activity.
3. Present your findings in class.

Credit note
A credit note is an accounting document sent by a seller or supplier to a buyer in
respect of goods returned or over-payments made. In other words, it is a ‘negativeʼ
invoice. This arises when sellers or suppliers send invoices containing items that
buyers are not at the position to receive them thus they have to be rejected and
returned to the seller/supplier. It may also arise due to the payment made from
buyers prior the end of the month when the statement of account is made. If these
cases happen, sellers or suppliers normally send the credit note to make cancellation
of invoices. The request from buyers is normally done by debit note. Most delivery
credit notes are pre-printed forms. Credit notes may also be in a headed-letter. Both
of these forms may be bound into a book form. They may be in duplicate or triplicate
depending on the nature of the farm business and recording system of the business.

Debit note
A debit note is a document sent by a buyer to a seller or supplier in respect of
goods returned, an over-payment made or else. It is a formal request for the seller or
supplier to issue a credit note. For example, if there are some items in the invoices
that were received by the buyer from the seller or supplier which were not received

Student’s Book Form Three
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