Resource Book on Horticulture Nursery Management

Debit Side Name of Account Credit Side
(Withdrawals)
(Depositions)
Date Particular Journal
Folio
No.
Amount Date Particular Journal
Folio
No.
Closing
Balance
TOTAL TOTAL
6. Stock Register: This is a register where the movement of stock is maintained.
Date Particulars
Sales
<strong>Book</strong>/Purch
ase <strong>Book</strong>
Folio No.
Receipts Issues Balance
<strong>Resource</strong> <strong>Book</strong> on Horticulture Nursery Management : 252
Amount
Quantity Value Quantity Value Quantity Value
The stock register is very similar to stock account. It tells us about the actual closing
stock available with the business to help the owner physically verify and place further
orders.
� Profit Analysis and Financial Ratios
A nursery enterprise requires capital investment to establish various fixed capital
assets as well as working capital. This capital investment requires arrangement of
finances from a financial institution like bank and from personal contribution or from
friends and relatives. The capital or finance raised from the bank or other lenders is at a
cost which is generally called the interest. In order to verify if the nursery enterprise is
economically viable and profitable various financial ratios are taken into consideration.
These ratios help the lenders to analyse the viability and profitability of the nursery
enterprise. Some important financial ratios are mentioned below:
Return on Investment: A nursery enterprise collects funds from two sources for
long-term investment. The amount collected is used to create assets and for day to day
operations this generates surplus for the enterprise. Surplus is required to be distributed to
the contributors of the funds. Interest is the compensation given to contributors of
borrowed capital, and net profit and depreciation are given to the owner of the enterprise.
Though depreciation reduces profit, it is a non-cash provision made to recover the
original investment. Thus, the cash profit of the enterprise is increased to the extent of
depreciation.
The total surplus generated by the project over its entire life has to be averaged to
find out yearly return. This yearly return, when calculated on the total investment needed