Service Firm Accounts and Farm Accounts
Service Firm Accounts
Services are firms that trade in services rather than goods (Example:
hairdressers/ Doctors). They are profit making firms and must also prepare
the usual accounts of a business.
Why prepare a service firm account?
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To see if the business is making a profit or loss
To find out the value of the business
To support a loan application
To compare to previous years
Identify times of surplus/deficit
Accounts kept by a service firm are:
 The Analysed Cash Book
 Profit and Loss Account (Operating Statement)
 Balance Sheet
2004 O.L.
Now let’s practice Questions from the textbook pg’s 438-441.
Farm Accounts
A farm, like any other business, must keep proper accounts. They are profit
making firms and must record figures appropriately.
Why prepare a Farm Account?
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To find out whether the farm made a profit or a loss
To compare with previous year’s performance
To compare with competitors
To support an application for a loan
To identify times of surplus/deficit
Accounts kept by a farmer:
 Analysed Cash Book
 Profit and Loss Account (Income and Expenditure Account)
 Balance Sheet
2004 O.L.
Now let’s attempt questions pg’s 445/446 of textbook