a. Using the information below, prepare a profit and loss account for Wellness Farms for...
a. Using the information below, prepare a profit and loss account for Wellness Farms for the year ended 31st December 2016.
-------------------------------------------N
Opening valuation----------------400,000
Cost of point-of-lay---------------200,000
Cost of feed-------------------------150,000
Cost of drugs-------------------------10,000
Transportation costs---------------10,000
Wages paid to workers-------------80,000
Sale of eggs--------------------------240,000
Sale of spent layers----------------100,000
Eggs consumed by farmer---------10,000
Closing valuation------------------600,000
b. Mention five problems faced by financial institutions in granting credit to crop farmers
c. State four characteristics of Centrosema pubescens
Explanation
a.
Vertical method
Sales and Receipts-----------------------N---------------N
Sale of eggs--------------------------240000
Sale of spent layers----------------100000
Eggs consumed by farmer---------10,000
Closing valuation------------------600,000------------950,000
Less Purchases and Expenses
Opening valuation----------------400,000
Cost of point-of-lay---------------200,000
Cost of feed-------------------------150,000
Cost of drugs-------------------------10,000
Transportation costs---------------10,000
Wages paid to workers-------------80,000
Net profit----------------------------------------------850,000
----------------------------------------------------------100,000
b.
-Inadequate farm records Unpredictable weather
-Illiteracy of farmers/low level of education of farmers.
-Long gestation period of some crops
-Poor agricultural know-how by bank personnel
-Uncertainties/risks associated with agriculture
-Problems of pests
-Problem of diseases
-Diversion of loans for other purposes
-Absence of crop insurance
-Unregistered farming enterprises
-Inadequate collaterals
c.
-Leafy leguminous vegetable
-Vigorous/aggressive growth
-Seeds are dispersed by explosive mechanism
-Good cover crop
-Resistant to drought
-Tolerant of shade
-Possesses hairless stem and leaves
-Creepy and twining legume
-Possesses trifoliate leaves which are attached to the stem
-Dicotyledonous plant
-Palatable to farm animals
-Purplish and reddish flowers
-Perennial