The following is a farm record which was extracted from Kaimosi Tea Estate Farm as at 31st December 2013. Study it carefully and answer the...

      

The following is a farm record which was extracted from Kaimosi Tea Estate Farm as at 31st December 2013. Study it carefully and answer the questions that follow.
Ksh
Cash at hand 20,000
Cash at bank 66,000
Buildings 50,000
Disc ploughs 16,000
Debtors 16,000
Working tools 12,000
Bank overdraft 24,000
Creditors 20,000
Farm loan 50,000
Cattle 40,000
Land 80,000
a) State two benefits of the balance sheet to the Kaimosi Tea Estate
b) Prepare the balance sheet from the above information for Kaimosi Tea Estate.

  

Answers


Kavungya
a) (i) Whether the farm business is solvent or insolvent.
(ii) For fair taxation.
(iii) For obtaining credits or loans
(iv) Land value in case of sale
(v) Value of assets and liabilities

b) fig2931020191454.png
Kavungya answered the question on October 3, 2019 at 11:55


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