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Animal Inventory
1) If a cow give birth her child, what will be accounting entries? Debit Live Stock Inventory Credit Appreciation Account (Income) This entry is to be based on estimated cost of new calf born. 2) What about their growth, Need any accounting entry? Esitmate cost of feeding and maintaining the new born calves at monthly intervals and make new entries on monthly or quarterly basis Debit Live Stock Inventory Credit Appreciation Account (Income) 3) what will be the procedure if any animal dies? When any animal dies, work out the cost associated with this animal by age group and make the following entry Debit Live stock Mortality Account (Expense) Creidt Live stock Inventory 4) Animal inventory will be set at cost or market value in Balance Sheet? Work out the cost of animal by age group and value the inventory at cost basis. However if the cost is higher than expected sales value, assume expected sale values after deduction of sales and collection charges.
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By: ali.jasra
Submitted: December 19, 2015
Essay Length: 355 Words / 2 Pages
Paper type: Study Guide Views: 572
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