In farming business, A cow gave birth to calf. What jounal entry would the businessman pass in his book? Please answer
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Farming business Journal entry is what?
Replies (2)
| Originally posted by : kamlesh | ||
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In farming business, A cow gave birth to calf. What jounal entry would the businessman pass in his book? Please answer |
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Hi Kamlesh !
There would be no journal entry to record this. Also note that as per IAS 41, only the cost of rearing animals can be recognised in the financial statements. A cow giving brith to a baby calf does not invlove any exchange or outflow of resources, which can be identified as a transaction. Hence, this cannot be measured and would not be recorded in accounts.
Hope that helps.
The entry will be 2 entries
1st will be
Live stock A/c dr.
To P/L suspense A/c
2nd will be
P/L suspense A/c dr.
To capital A/c
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