(a) State six reasons why farm accounts should be kept by a farmer. (b) Prepare a profit and loss account for Ada Farms, for the year ending December, 1993 ...

(a) State six reasons why farm accounts should be kept by a farmer.

(b) Prepare a profit and loss account for Ada Farms, for the year ending December, 1993 using the following information.

(i) cost of maize seeds- N1,500.00

(ii) cost of fertilizer - N1,600.00

(iii) cost of insecticides - N1,000.00

 (iv) tractor hiring- N1,000.00

(v) cost of herbicides- N1,200.00

(vi) cost of cassava stems N1300.00

(vii) sales of maize- N30,000.00

(viii) sales of yam tubers - N10,500.00

(ix) sales of cassava stems - N15,000.00

(x) transportation cost - N1,500.00

(xi) cost of processing cassava tubers - N 2,500.00

 (xii) sales of cassava stems - N 22,00.00

(xiii) wages of workers N 8,000.00

(xiv) miscellaneous expenses - N 2,000.00

(xv) maize consumed - N 500.00

(xvi) yam consumed - N 800.00

(xvii) opening valuation - N45,000.00

(xviii) closing valuation - N15,000.00