AGRICULTURAL ECONOMICS
(FARM ACCOUNTS)
1. 1996
a) List four types of financial books farmers should keep. (2 marks)
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2. 1996
State two uses of a balance sheet. (2 marks)
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3. 1998
Study the following information which was extracted from
Mr. Rambo’s farm record on 31 -12 – 95 and answer the
question below.
Kshs.
Loans payable to bank 300,000
Five milking cows 250,000
400 layers 80,000
20 goats 30,000
Debts payable to cooperative 20,000
Buildings and structures 600,000
Bonus payable to workers 19,000
Cattle feed in store 10,000
Animal drugs in store 4,000
Debts receivable 18,000
Breakages to repair 30,000
I cash at hand 20,000
I Cash in bank 30,000
Spray equipment 12,000
Prepare a balance sheet for Rambo’s farm using the information above (7 marks)
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4. 2001
a) Explain the following terms as used in farm account.
i) Cash account
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ii) Ledger
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iii) Balance sheet
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iv) Purchase order.
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Name two types of inventories used in farm accounts. (2 marks)
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5. 2002
On 5 – 1- 2001 Tamu farm purchased on credit the following items
from a K.F.A shop.
• 20 bags of dairy meal, 70kg each @ sh. 1,100 per bag.
• 16 bags of bran, 70kg each @ sh. 700 per bag.
• 18 bags of D.S.P fertilizer, 50kg each @ sh. 1,500 per bag.
• 45 bags of seed maize, each 2kg @ Ksh. 300 per bag.
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• 8 shearing knives (medium size) @ sh. 300 per knife.
i) Prepare the purchase order that Tamu farm made to K.F.A. (6 marks)
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ii) Calculate the value of each item purchased and the total value of the order.
(3 marks)
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6. 2004
The following accounts information is from Mrs. Mbuta’s farm
for the year ended 31 – 12 – 2003.
Opening valuation Ksh. 6,000/=
Paid wages Ksh. 5000/=
Bought equipment worth Ksh. 8,000/=
Bought pig feeds worth Ksh. 4,000/=
Sold mature pigs worth Ksh. 7,000/=
Bought drugs worth Ksh. 3,200/=
Sold maize worth Ksh. 3,000/=
Closing valuation Ksh. 4,000/=
i) Using the information above, prepare a profit and loss account for Mrs.
Mbuta’s farm.
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ii) From the calculations in (i) above, state whether Mrs. Mbuta made a profit
or a loss. (1 mark)
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7. 2005
a) What is opening valuation as used in farm account? (1 mark)
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b) State the use of each of the following financial documents (3 marks)
i) Cash receipt
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ii) Purchase order.
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iii) Delivery note.
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8. 2006 Q16 P1
Give two reasons why farmers keep farm accounts
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9. 2008 Q10 P1
Differentiate between the following terms as use in agricultural
economics:
a) Fixed input and variable input. (1 mark)
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b) Journal and ledger book. (1 mark)
10. 2009 Q5 P1
State four financial documents that should be kept on a farm (2 marks)
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11. 2010 Q21 P1
On 1st January 2009, Kaburu Farm started farm operations with Ksh 30,000 cash.
During the month, the farm made the following transactions. Study the
transactions and prepare a cash analysis for Kaburu Farm for the month of
January. (5 marks)
Date Transaction Amount (Ksrri
05/01/09 Livestock sales 80,000
08/01/09 Crop sales 50,000
15/01/09 Bought seed for planting 7,500
20/01/09 Paid K.F.A. for fertilizer 16,400
25/01/09 Bought livestock feeds 50,000
30/01/09 Paid wages for planting & weeding 56,000
31/01/09 Received cash from K.C.C. for milk 120,000
delivery
31/01/09 Paid transport charges for milk 9,000
delivery
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12. 2011 Q8 P1
State the use of the following in farm accounting:
a) Balance sheet:
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b) Inventory;
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c) Cash book;
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13. 2011 Q23 P1
The following information was extracted from Makueni Farm Records
for the financial year ending on 30th June 2009. Study it and prepare
a profit and loss account for the farm. (3 marks)
• Rent received Sh. 10,000
• Egg sale Sh. 60,000
• Repair of tractor Sh. 30,000
• Opening valuation Sh. 80,000 Interest on bank loan
Sh. 20,000
• Tax paid Sh. 40,000
• Closing valuation Sh. 90,000
• Purchase of farm inputs Sh. 90,000
• Debts receivable from
Farmers co-op society Sh. 100,000
• Maize sales Sh. 55,000
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