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Farming business Journal entry is what?

Kamlesh (Article Assistant) (181 Points)

26 August 2012

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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StarShines (Student CA Final ) (35 Points)
Replied 03 September 2012

Originally posted by : kamlesh
	In farming business, A cow gave birth to calf. What jounal entry would the businessman pass in his book? Please answer

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.

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