answer this

CASH/BANK A/C       DR

TO MEMBERS ACCOUNTS 

COST OF MILK A/C    DR

TO CASH/BANK

PROFIT/LOSS   DR

TO COST OF MILK ACCOUNT

COST OF MILK = FEEDING OF ANIMALS+MAINTENANCE OF THEM+MAINTENANCE OF SHADE+ OTHER EXPENSES INCURRED BY UR CLIENT ON SAME =SOME AMOUNT

THE DIVIDE THE AMOUNT INCURRED BY THE LITERS OF MILK UR CLIENT GETS ANNUALY

SAY 200000/20000LTRS . DO NOT INCLUDE PROFIT COMPONENT SINCE UR NOT SELLING THE MILK BUT ONLY GIVING COMPENSATION FOR INTEREST FREE LOAN.

TELL UR CLIENT TO FIRST MAKE BUDGET OF ANNUAL EXPENSES AND THE MILK HE WILL GET ANNUALY AND THEREBY FOLLOW THE ABOVE PROCEDURE

The above deposit money of INR one lakh can be treated as deferred revenue income by dairy farm.

When it has been treated as Deferred revenue income, immediate effect will be----

Bank A/c   Dr.

     To Deposit from member A/c  

Now upon a reasonable calculation , income in relation to milk sold to each member  shall be accrued to P&L A/c from that deposit A/c. For this, entry will be---

Deposit from member A/c     Dr.

         To P&L A/c.

Relating to cost, it will be charged as usual. Same way , as it would have been done if sold on daily basis.

NOTE--- Assumed deposit is for supply of milk instead of collecting on daily/monthly basis.

If that Rupees one lakh is like a security money, then pass only  one entry:

Bank A/c   Dr.

     To Deposit from member A/c  

There is absolutely no need to account for cost aspect separately as it will be done on routine basis as and when milk is sold.

Thanks faizad