a. Using the information below, prepare a profit and loss account for Wellness Farms for the year ended 31st December 2016.
——————————————-₦
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-----------------------₦----------------₦
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