Page 307 - Agriculture_Form_Three

Agriculture for Secondary Schools

(a) Write down the invoice as from 09/03/2021 and the statement that
Mshikamano Farm sent to Bora Mills on 31 March 2021.
st
(b) Write down the cheque that Bora Mills sent to Mshikamano Farm on
05/04/2021.

4. Briefly, describe the use of the following accounting documents on the farming
business:
(a) Invoice (b) Receipt (c) Delivery note (d) Purchase order
(e) Cheque (f) Agreement (g) Credit note (h) Debit note.

Basic record and account books in farming business
There are various accounts in farming business. These accounts are reference books
which keep or store financial transactions over a long period of time. They are
also known as financial books. They include journals, income records, expenditure
records, debtors’ records, creditors’ records, and payment to farm employees’ records/
accounts. An account is a page or a section in the record book given to a person/
business or capital asset(s) and on which all the business transactions relating to that
person/business or asset are entered. The details of these accounts/records and their
uses are elaborated hereafter.

Journal
Journal is the primary book of keeping account records. It is the accounting record
that is made just after making transactions. This is the book where the transactions
are recorded in a chronological order of dates. Since a farm may contain more than
one enterprise, recording in journal should indicate the enterprise the transactions are
referred to. Therefore, a journal states the date of a transaction, enterprises effected
and the amounts. Recording transactions is done in sequential order of dates with
explanations. This is because the journal account allows for concise review and
later records transfer in the accounting process. Journal works like farm diary for
recording all financial events as they occur in the farm throughout the year. Figure
13.7 shows a sample template of a page of journal account.

Farm Journal
Date Enterprise Particulars Amount (TZS)

Figure 13.7: Sample template of journal

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