Accounting for Agriculture

In India agriculture is operated and maintained by family of farmers. The proper financial accounting is not maintained in agriculture. Attention should be given on proper accounting in agriculture. The incomplete records are maintained on cash basis. Proper maintenance of accounts is useful for owners, government and research agencies. Government decided subsidy for fertilizers, manures and for other activities based on proper maintenance of records. The inputs record kept by the farmer discloses him to what extend and in what proportions he is using land, labour and capital. The accounts should be classified to ascertain cost of each crop, to compare various crops productivity, profitability and measure the effectiveness of allied activities. The problems of agricultural accounting are the difficulty of allocating various costs among various crops and other allied activities such as live stock poultry etc. Lack of proper farm management and accounting system are the main reason for low productivity. KeywordsFarm-family, Productivity, Accounting tools, Subsidy and Live stock