The following information was obtained from Lang’at’s farm records for the year ending December, 2004. Study it and answer the questions that follow:-

      

The following information was obtained from Lang’at’s farm records for the year ending
December, 2004. Study it and answer the questions that follow:-
Goats 4,000
Poultry 15,000
Causal workers 12,000
Opening valuation 150,000
His sales and receipts are as follows:
Mohair 75,000
Rabbits 3,600
Eggs to hotel 15,000
Closing valuation 200,000
(a) Prepare the profit and loss A/C of Lang’at’s farm
(b) State the benefit of a profit and loss A/C to Mr. Lang’at

  

Answers

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b)- Helps the farmer to detect whether he has loss or profit
- Helps in tax assessment to avoid over taxation
- Acts as evidence when a farmer requires a loan

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sharon kalunda answered the question on April 15, 2019 at 14:34

Next: List any two financial statements which may be prepared on a farm
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