Procedures for Accounting for Livestock

Purchases

All stock purchases are charged to the Centre/Project funding the purchase and to the appropriate asset account. The livestock asset accounts are as follows:

E.g. 20711-01041-0749-99-31-00 for horse purchases.

Sales

School

All livestock sales are to be recorded on a Sale of Livestock Form (XLS, 41 KB)(opens in a new window).

Proceeds from each sale are coded to the appropriate Centre/Project and to account 0263 - Proceeds on Sale of Livestock Clearing Account.

E.g. 20711-01041-0263-99-31-00 for horse sales.

The proceeds are then receipted by the Finance Office.

Finance Office

The Accounts Receivable Assistant will receipt the proceeds into Payments to the appropriate account as per the Sale of Livestock Form.

The Accounts Receivable Assistant will note the Payments receipt number on the form and forward completed form to the Financial Accountant.

Financial Accountant

On receipt of the Sale of Livestock Form, the Financial Accountant:

Debit/Credit Account Description Amount
Debit 0263 Proceeds from Livestock Clearing Account Total proceeds of sale
Credit 3024 Beef Cattle Sales Total proceeds of sale
3025 Calf Sales
3026 Cull Cow Sales
3028 Horse Sales
3030 Sheep Sales
3032 Deer Sales
Credit 0741 Beef Cattle - Previous year Average asset value of livestock as at previous year-end stocktake
0742 Deer - Previous year
0743 Sheep - Previous year
0744 Horses - Previous year
Debit 1418 Revaluation Reserve - Beef Cattle Average reserve value of livestock as at previous year-end stocktake
1419 Revaluation Reserve - Deer
1420 Revaluation Reserve - Sheep
1421 Revaluation Reserve - Horses
Debit/Credit 7604 Cost of goods sold - Livestock Difference between average asset value and average reserve value

Each month the Financial Accountant reconciles the Proceeds of Livestock Clearing Account (0263) to ensure all University Sale of Livestock Forms have been processed.

Births and Deaths

The School is to complete a Livestock Births and Deaths Form (XLS, 53.5 KB) (opens in a new window) in the event of any natural increase or death of livestock. The completed form is to be forwarded to the Financial Accountant to process a journal to recognise the natural increase or death.

In the event of a natural increase

The journal is as follows:

Debit/Credit Account Description Amount
Debit 0746 Beef Cattle - This year Market valuation as advised by School
0747 Deer - This year
0748 Sheep - This year
0749 Horses - This year
0752 Reptiles - This year
Credit 2768 Contribution of assets

In the event of a death

If livestock was born or purchased in current year, the journal is as follows:

Debit/Credit Account Description Amount
Debit 7604 Cost of good sold - Livestock Market valuation as advised by School or cost
Credit 0746 Beef Cattle - This year
0747 Deer - This year
0748 Sheep - This year
0749 Horses - This year
0752 Reptiles - This year

If livestock was held at 31 December in the prior year, the journal is as follows:

Debit/Credit Account Description Amount
Debit 1418 Revaluation Reserve - Beef Cattle Average reserve value of livestock as at previous year-end stocktake
1419 Revaluation Reserve - Deer
1420 Revaluation Reserve - Sheep
1421 Revaluation Reserve - Horses
1422 Revaluation Reserve - Reptiles
Credit 0741 Beef Cattle - Previous year Average asset value of livestock as at previous year-end stocktake
0742 Deer - Previous year
0743 Sheep - Previous year
0744 Horses - Previous year
0751 Reptiles - Previous year
7604 Cost of goods sold - Livestock Difference between average asset value and average reserve value

School

The school completes a Livestock Holding Certificate (XLSX, 208.69 KB) (opens in a new window) for each category of stock as at the 31st December each year. These are forwarded to the Financial Accountant, by the end of the first week in January.

Finance Office

The Financial Accountant processes a journal for each category of livestock to recognise the livestock valuation adjustments as follows:

Livestock Debit/Credit Account Description Amount
Market value greater than assets holdings Debit 0741 Beef Cattle - Previous year Market valuation as advised by School less sum of "This Year" and "Previous Year" asset accounts
0742 Deer - Previous year
0743 Sheep - Previous year
0744 Horses - Previous year
0751 Reptiles - Previous year
Credit 1418 Revaluation Reserve - Beef Cattle Market valuation as advised by School less sum of "This Year" and "Previous Year" asset accounts
1419 Revaluation Reserve - Deer
1420 Revaluation Reserve - Sheep
1421 Revaluation Reserve - Horses
1422 Revaluation Reserve - Reptiles

OR

Livestock Debit/Credit Account Description Amount
Market value less than assets holdings Debit 1418 Revaluation Reserve - Beef Cattle Sum of "This Year" and "Previous Year" asset accounts less market valuation
1419 Revaluation Reserve - Deer
1420 Revaluation Reserve - Sheep
1421 Revaluation Reserve - Horses
1422 Revaluation Reserve - Reptiles
Credit 0741 Beef Cattle - Previous year Sum of "this Year" and "Previous Year" asset accounts less market valuation
0742 Deer - Previous year
0743 Sheep - Previous year
0744 Horses - Previous year
0751 Reptiles - Previous year

The Financial Accountant to ensure asset balances in the ledger agree to the Livestock Holding Certificate balances following posting of adjustments.

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