Maratha Samaj Seva Mandal’s

CHH. SHIVAJI NIGHT COLLEGE OF

ARTS & COMMERCE, SOLAPUR.
ADVANCED ACCOUNTANCY PAPER - IV
M.Com – II Sem. – IV
W.E.F. June-2021

FARM ACCOUNTING

Problems –

Problem No. 1

From the following information prepare “Crop Account” to find out the profit earned.

Debit Credit
Particulars Rs. Rs.
Opening Stock
Grain 2,600
Seeds 600
Fertilizers 400 3,600
Purchases
Seeds 400
Fertilizers 600 1,000

Wages paid in Cash 3,500

Wages paid in kind by giving grain 2,500
Sale of grain 25,400
Grain consumed by the owner 600
Grain consumed by the Live-stock section 2,400
Depreciation of Farm Machinery 1,000
Repairs & Maintenance of Farm Machinery 2,000
Closing Stocks
Grains 2,000
Seeds 400
Fertilizers 600 3,000

Prof. Admane D.B. CSNC,Solapur. 1

M.Com-II-Sem.-IV- Problems of Royalty Accounts.
Problem No. 2

From the following Trial Balance of Sudha Farm Ltd., prepare Crop Account, ‘Live-stock
A/c’, Profit & Loss Account for the year ended 31st March, 2012 and a Balance Sheet as on that
date.

Debit Rs. Credit Rs.

Stock on 1-4-2011 : Sundry Creditors 15,000
Growing Crops, Wheat Bank Overdraft 3,000
Seeds and Fertilizers 20,000 Manager’s Personal A/c 2,000
Live-stock 25,000 Sales :
Feeding Materials 6,000 Wheat 35,000
Crop Expenses 10,000 Live-Stock 75,000
Live-stock Expenses 28,300 Loan 60,000
Farm House Expenses 1,200 Provision for Depreciation 30,000
Interest on Loan (crop) 4,000 Profit & Loss A/c 10,000
Share Capital 2,70,000
Salaries & Wages :
Manager’s Salary 6,000
Farm Labour 5,000

Staff Meals 500

Land & Building 2,10,000
Farm Machinery 1,08,000
Sundry Debtors 30,000
Cash in Hand 26,000
Repairs to Machinery 1,000
Tools & Implements 2,500
Office Expenses 4,000
Live-stock Purchases 12,500

5,00,000 5,00,000

Additional Information :
1. Stocks on 31-3-2012 Rs.
Growing Crops, Wheat, Seeds and Fertilizers 10,000
Live-stock 40,000
Feeding Materials 1,000
Tools and Implements 2,000

2. Depreciation on Tools and Implements is to be apportioned between crop and live-stock

equally.

3. The Live-stock A/c is chargeable with 20% of Manager’s Salary and Staff Meals.

4. Farms product worth Rs. 1,000 is consumed by cattles.

Prof. Admane D.B. CSNC, Solapur. 2

M.Com-II-Sem.-IV- Problems of Royalty Accounts.

Problem No. 3

From the following prepare a ‘Cattle Account’ to ascertain the profit made during the year

ended on 31st March, 2012.

Value
Particulars No.
Rs.

Opening Stock of Live-stock 50 42,000

Purchases of Live-stock 125 1,20,000

Sale of Cattle during the year 90 1,26,000

Sale of Slaughtered Cattle 10 8,000

Sale of Hides - 2,000

Sale of Offal - 500

Sale of Carcasses 5 1,800

Cattle Feed - 20,000

Wages of Rearing - 4,000

Slaughter-house Expenses - 1,000

Insurance - 1,000

General Expenses Allocated - 2,000

Closing Stock of Live-stock 75 75,000

Crop worth Rs. 8,000 grown in the farm was used for feeding the cattle. Out of the calves

born 4 died and their carcasses realised Rs. 400.

Prof. Admane D.B. CSNC, Solapur. 3

M.Com-II-Sem.-IV- Problems of Royalty Accounts.

Problem No. 4

From the following Trial Balance prepare Trading and Profit & Loss Account for the year

ended 31st March, 2021 and a Balance Sheet as on that date :

Debit Balance Rs. Credit Balance Rs.

Opening Stock Sales
Paddy 3,200 Milk, butter etc 24,320
Live-stock 48,800 Paddy 42,080
Fertilizers 1,760 Live-stock 7,200 73,600
Cattle Feed 2,240 56,000
Purchases Creditors 9,440
Live-stock 9,280 Capital 1,36,960
Cattle Feed 5,440
Fertilizers 1,920
Seeds 960 17,600
Crop Expenses
Labour 5,760
Other Expenses 640 6,400
Live-stock Expenses
Vaterinary & Medicine 960
Labour 5,760
Direct Expenses 1,280 8,000

General Expenses 9,600

Tractor 28,800
Land 80,000
Cash in hand & at Bank 13,600

2,20,000 2,20,000

Adjustments :

1. Closing Stock on 31.3.2021were :

Live-stock Rs. 48,000; Paddy Rs. 2,400
Cattle Feed Rs. 1,440; Fertilizers Rs. 960

2. The proprietor has consumed the following items out of his farm output.
Milk, butter etc. Rs. 3,840
Paddy Rs. 960

3. Provide 10% depreciation on Tractor.

Prof. Admane D.B. CSNC, Solapur. 4

M.Com-II-Sem.-IV- Problems of Royalty Accounts.
Problem No. 5

From the following trial balance of Sandhya Farm prepare Crop Account, Live-stock
Account, Profit and Loss Account for the year ended 31 st March, 2014, and Balance Sheet as on
that date.

Trial Balance

Debit Balance Rs. Credit Balance Rs.

Opening Stock : Sundry Creditors 7,500
Growing Crops 5,000 Bank Overdraft 1,500
Wheat 2,500 Managers Personal Account 1,000
Fertilizer 2,500 Sales :
Live-stock 12,500 Wheat 17,500
Feeding Materials 3,000 Live-stock 37,500
Crop Expenses 5,000 Loan 30,000
Live-stock Expenses 14,150 Provision for Depreciation 15,000
Farm House Expenses 600 Profit & Loss A/c 5,000
Interest on Loan (Crop) 2,000 Capital 1,35,000
Salaries & Wages :
Manager’s Salary 3,000
Farm Labour 2,500
Staff Meals 250
Land & Building 1,05,000
Farm Machinery 54,000
Sundry Debtors 15,000
Cash in Hand 13,000
Repairs to Machinery 500
Tools & Implements 1,250
Office Expenses 2,000
Live-stock Purchases 6,250

2,50,000 2,50,000

Addition Information :

(a) Stock on 31st March, 2014 Growing crops Rs. 2,000; Wheat Rs. 2,000; Fertilizer Rs. 1,000;
Live-stock Rs. 20,000; Feeding materials Rs. 500; Tools and Implements Rs. 1,000.
(b) Depreciation on Tools & Implements is to be allocated between Crop and Live-stock equally.
(c) Manager’s salary and staff meals are charged 20% to the Live-stock Account and 80% to
the Crop Account.
(d) Farm product worth Rs. 500 is consumed by cattles.
(e) Farm house expenses and Farm Labour distributed between Crop and Live-stock in the ratio
of 3:2.

Prof. Admane D.B. CSNC, Solapur. 5

M.Com-II-Sem.-IV- Problems of Royalty Accounts.

Problem No. 6

From the following Trial Balance of Shri Ramdas, a farmer, prepare.

1. Dairy Account
2. Farm Account for the year ended 31st December, 2015 and
3. Balance Sheet as on that date.

Trial Balance

Dr. Cr.
Particulars
Rs. Rs.
Opening Stock (1-1-15) :
Paddy 10,000
Potatoes 16,000
Cattle 20,000
Sheep 14,000
Purchases :
Feed 20,000
Sheep 20,000
Cattle 1,60,000
Seeds 10,000
Manures 20,000
Crop Expenses :
Labour 8,000
Other Expenses 6,000 14,000
Live-stock Expenses :
Medicines etc. 10,000
Labour 4,000
Dairy Expenses 6,000 20,000
Expenses of Machinery :
Repairs 6,000
Diesel & Oil 10,000
Electricity 4,000 20,000
General Overheads :
Rent & Taxes 20,000
Insurance 4,000
Labour 16,000
Bank Interest 10,000
Manager’s Salary 42,000
Farm Machinery 2,00,000
Land 4,00,000
Cash in Hand 20,000
Cash at Bank 60,000
Sales :
Paddy 68,000
Potatoes 48,000
Sugarcane 68,000
Cattle 2,08,000
Milk etc. 48,000
Sheep 60,000
Loan from Land Development Bank : 1,74,000
Capital 4,00,000
Creditors for Suppliers 40,000
Manager’s Personal A/c 2,000

11,16,000 11,16,000

Prof. Admane D.B. CSNC, Solapur. 6

M.Com-II-Sem.-IV- Problems of Royalty Accounts.

Additional Information :

1. Closing Stock on 31-12-2015

Paddy Rs. 20,000, Potatoes Rs. 12,000, Cattle Rs. 30,000 and Sheep Rs. 20,000.

2. 50% of Rent and Rates may be taken on the share of Shri. Ramdas for this residence.
Manager’s salary is to be allocated to dairy and farm in the ratio of 4:3. No portion of his
salary remained outstanding at the end of the year. Other general overheads are to be
charged to Farm Account.

3. Shri. Ramdas has consumed the following.

Milk etc. Rs. 4,000, Potatoes Rs. 2,000 and Paddy Rs. 14,000.

4. Manager has consumed the following during the year.

Milk etc. Rs. 2,000, Potatoes Rs. 1,000.

5. Manager is entitled to a commission at 1% on sales relating to dairy section only.

6. Provide 10% depreciation on Farm Machinery.

Prof. Admane D.B. CSNC, Solapur. 7