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Bus0261;Farm Management Question Paper
Bus0261;Farm Management
Course:Diploma In Agriculture
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESTION ONE – 30 MARKS
(a) Explain the business accounting cycle. (6Marks) (b) Distinguish between risks and uncertainties. Give an example of each. (6Marks) (c) Explain the various types of cash books (6Marks) (d) State the reasons of preparing a cash budget. (6Marks) (e) State the limitations of the Gross Margin Analysis. (6Marks) (f) Explain any five books used in Farm Accounting. (6Marks)
QUESTION TWO – 15 MARKS
(a) Explain the five golden rules of farm accounting. (5Marks) (b) Explain the various classifications of farm accounts. (5Marks) (c) Distinguish between fixed costs and variable costs. (5Marks)
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QUESTION THREE – 15 MARKS (a) The following information appeared in the books of PQR farm. Prepare a balance sheet by first calculating capital. (10Marks) Item Amount (DR) Amount (CR) Cash crops 200,000 Perennial crops 100,000 Debts 20,000 30,000 Expenses 50,000 A.F.C Loan 150,000 Bank Overdraft 50,000 Cash 70,000 Machinery 300,000 Tools 40,000 Motocars 50,000
(b) Explain why a Trial Balance may not balance. (5Marks)
QUESTION FOUR – 15 MARKS (a) The following information is in the books of XYZ farm on 1/1/2000 Month Sales Labour Cost Materials cost Fixed costs JAN 20,000 5,000 4,000 1,000 FEB 21,000 3,000 3,000 1,000 MARCH 22,000 4,000 4,000 1,000 APRIL 30,000 3,000 3,000 1,000 MAY 20,000 3,000 3,000 1,000
The balance b/f Jan first sh. 10,000 cash Required: Prepare a three months cash flow budget starting 1/1/2000. (10Marks)
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(b) Explain the procedure of preparing the complete budget. (5Marks)
QUESTION FIVE – 15 MARKS (a) Discuss the documents used in the process of credit transaction in the order in which they are used. (10Marks) (b) Explain the following: (i) Assets (ii) Liabilities (iii)Capital (iv) Carriage inwards (v) Contra Entry
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