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Chapter 2: The Consultancy Centre's basic accountancy work

In principle, the farmer can himself make all of the accountancy work. Under most circumstances, however, he will have advantage of using the farmers' consultancy centre to the work between the balanced cash book and the finished accounts.

 

 

Translation

 

Kasselister

Cash Book

Regnskabsmaterialer

Accounts

Regnskabskontor

Consultancy Center

 

The Purposes of Farmers' Accounts

There are two main reasons for farmers to make bookkeeping and accounts:

Public authorities' demands for bookkeeping and accounts:

 

Farmer's own demands for bookkeeping and accounts:

 

All of these tasks can be taken care of at the Consultancy Centre.

Basic bookkeeping

When the farmer's Cash Book and the matching vouchers arrive to the Consultancy Centre, it is treated in this way to be turned into accounts:

 

Checking and auditing: All additions and balances are controlled, and every item in the Cash Book is compared with the vouchers. Needed transfers of i.e. interest and repayment should be made at this moment.

 

Choosing an account number for every item: In the Cash Book the items are entered chronologically. It means, that repair bills, sale of grain and private costs are all mixed up, according to the day of payment. In the account materials we wish to show these items in another order, with all kinds of fodder in one group, all private costs in another group, etc. This is done by giving an account number to every item, and afterwards sorting all items by the account numbers.

 

 

 

The total number of single accounts is decided according to these considerations:

 

Many single accounts, if

 

Few single accounts, if:

 

In the example below, you should note, how the code "1" in column "M" divides the amount 10614,63 from sale of 12490 kg wheat into two:

 

The item in the Cash Book:

Sold wheat

12490 kg

10614.63 kroner

account 1-3131

 

is divided into two items in the Item List:

Sold wheat

12490 kg

9230.11 kroner

account 3131

VAT of sale

 

1384.52 kroner

account 9700

 

 

 

 

Translation

 

Solgt hvede

Sold wheat

- do - moms

Sold wheat, VAT

 

Item List

In the Cash Book the single items are shown in the order they are entered. When the Consultancy Centre employees have added an account number for every item, it is possible to make a sum per account. The result is called an Item List.

 

The users of the accounts (the farmer, his bank, or the tax officials) can follow every single item from the Cash Book through the Item List to the final Tax Account and Managerial Account.

 

If the farmer sends in his Cash Book and vouchers and informs the Consultancy Centre of debts and amounts due to him, then he can use the Item List and other materials to make the right decisions in managing his farm.

 

 

 

Translation

 

Horizontally

 

KONTO

Account No.

MD

Month

BILAG

Voucher No.

TYPE

Type of item

MOMS

Amount of VAT

NETTOBELØB

Amount without VAT

...

 

Vertically

 

2910 PRIVATLÅN

Private credit

2921 MEJETÆRSKERLÅN

Combiner credit

3131 HVEDE SALG

Sale of wheat

3550 RAPS

Rape

7437 VEJMATERIALER

Materials for road

7452 MURER

Bricklayer

7532 REPARATION AF DRÆN

Repair of drain

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