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  1. Packaging Criteria I | Week 1
    2 Topics
  2. Packaging Criteria II | Week 2
    2 Topics
  3. Criteria for Selecting Materials for Packaging Agricultural Produce | Week 3
    4 Topics
    2 Quizzes
  4. Pricing & Advertising | Week 4
    6 Topics
  5. Marketing in Agriculture | Week 5
    3 Topics
    2 Quizzes
  6. Farm Records & Book Keeping | Week 6
    3 Topics
  7. Types of Farm Records | Week 7
    9 Topics
  8. Computer-Aided Farm Records and its Benefits | Week 8
    3 Topics
  9. Farm Accounting and Bookkeeping | Week 9
    6 Topics
    1 Quiz

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Topic Content:

  • Definition of Profit and Loss Account
  • Importance of Profit and Loss Account
  • Worked Example – Preparing a Profit and Loss Account
  • Evaluation Essay Questions

What is a Profit and Loss Account?

A profit and loss account is an account that is prepared at the end of a business period, usually a year, by the farmer to know whether his business is making a profit or loss.

In this account, all expenses and purchases are listed on the left-hand side, i.e. debit side and all receipts or sales are recorded on the right-hand side i.e. credit side.

The farmer can determine his profit or loss by simple subtraction.

The formula for net profit is:

Net Profit = Total Revenue – Total Expenditures


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