x-3-g-5a – 5b • Suggestions On Charts Of Accounts

To Tish
From Gene

SUGGESTIONS ON CHARTS OF ACCOUNTS

# Comment
106 B will never have a savings account, no banks in area; delete
108, 109 Should be “cash account”
111 Too general. What would they be?
 112 We need a separate accounts receivable for each operation: boat, eggs, dairy, cattle, farm, mill, cassava plant, so we can review each one separately
113-116 Does this include “goods on hand”?, “Work in progress”?. How to handle half grown crops – are they an asset? At what stage of maturity?
123 Need a separate account for each building – maybe not in Georgetown – what do you think? Example: vegetable market, lumberyard, office/home, church
140 etc. No account for cleared land per se – is it an asset? I think so, nor an expense account for the cost of land clearing
141-165 Need a separate account for each finished structure, and a work in progress or construction account for each structure during construction. Otherwise we will be able to show cost for depreciation. See comment to #112. Also for unallocated construction supplies & equipment.
194-5 How and when do you make entries? When a calf is born or a tree planted? Both valued much higher 4 years later.
200 Series There should be one set up for each business from the start – we will have to do it here anyway.
281-297 Irrelevant, Delete
311 Should refer to A only
312 Separate account for each business
412 Should be NIS
411 Should be Withholding income tax
415 Delete, no sales tax here, should be “Tax Stamps”
420-29 Series Add photo expense, equipment costs, secretarial supplies
440 Series Add on account for medical and drugs, this is a big item. I separated the housing & business functions on mine, it is a better way.
450 Series Should be a separate series for farm, pigs, dairy, cattle, cassava plant. Where do we put leasehold improvements such as fencing, pasture, etc.
501 Note most lease expense. Example: Survey should be capitalized. If they took the lease back  (or part of it) they would have to pay us. They capitalize it.
505 Delete. None there, could replace with radio cost, mostly M&R
508 Severed account for residential and each business.
510-512 See comments on A. Also note: Most of our payment is to labor contractors, farm should have such an account
516 All exchange costs are borne by A
514 Separate account for each business
532 None, delete
500-30 One for each business
540 Series Add an account for chickens (we grow our own, but not mix in food), medical, allowances, each
600-25 Series We’ll probably end up with several boats of different sizes, two maybe “business” the others not. Each business boat will need its own accounting.
750 etc. We need a theft and casualty loss account
766 Where do we depreciate the sawmill buildings and equipment as a separate entity?
776 Series Separate set for farm, pigs, dairy, cattle, cassava plant

Well, let me know. I may not have it understood, if so clarify. We buy pigs in March.

Love, Gene