Practical Accounting I

is applied to agricultural product at the point of harvest. Thereafter PAS 2 for inventories shall be applied.

Biological Assets includes living plants and animals

• Agricultural Activity managed activity that facilitates bio transformation
• 1.growth
• 2.pro-creation
• 3.reformation
• 4.Product of Agricultural Product

1. Stocks in lieu of cash dividend-treated as dividend income and recorded at FMV w/a DR.

2. Cash received in lieu of stock dividend, treated as return of investment

• Cash         xx
•    Investment  xx
•    Gain            xx

• 3. Stock dividend is not journalized only memo entry.
• 4.Preference shares is a non-rating shares. Any dividend received should be treated as a dividend income.
• 5. Stock dividends of diff. class are not income, the total amount of consideration be divided to diff classes of stocks.