Resource Book on Horticulture Nursery Management

Apart from the record for the sale and production of nursery plants it is also
recommended that the nursery entrepreneur maintain record of expenditure in the nursery
which is called book keeping.
<strong>Book</strong> keeping is one of the functions of financial accounting. <strong>Book</strong> keeping entails
maintaining proper records and books for recording complete details of transactions made
during the course of business. Business transactions can be classified into several major
activities/groups e.g. sales, purchases, assets, etc. Separate books for recording
transactions pertaining to these activities are maintained. Details of the transactions are
record into respective head. This exercise is called <strong>Book</strong> keeping.
It is advisable to maintain books of accounts for the following reasons:
� They provide up-to-date information about the nursery business.
� They reflect the outcome of transactions made during the period under review.
� They give information about the state of affairs of the business at regular
intervals.
� They help governments and other authorities to decide about the incidence of
various taxes.
� They help to analyze the performance of the nursery business.
� They help to compare the performance of several business firms.
Various records of expenditure and income are recorded in different book records as
follows:
1. Purchase <strong>Book</strong>: In the purchase book, all transactions pertaining to purchases on
credit or cash are recorded. Transactions of purchase returned are also recorded here
separately.
Date Party‟s
name
Total
Bill
No.
Ledger
Folio
Item
name
<strong>Resource</strong> <strong>Book</strong> on Horticulture Nursery Management : 250
Quantity Rate Amount Terms
2. Sales <strong>Book</strong>: In the sales book, all transactions pertaining to credit or cash sales are
recorded. Transactions of sales returned are also recorded separately.
Date Party‟s
name
Total
Bill
No.
Ledger
Folio
Item
name
Quantity Rate Amount Terms
3. Ledger: All accounts involved in the transactions recorded in the journal or its
subsidiary books are maintained here, and necessary posting is made.