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:

  • 0746: Beef Cattle - This year
  • 0747: Deer - This year
  • 0748: Sheep - This year
  • 0749: Horses - This year
  • 0752: Reptiles - This year

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, 33.5 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 OneStop to the appropriate account as per the  Sale of Livestock Form.

The Accounts Receivable Assistant will note the OneStop 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:

  • Verifies the proceeds have been posted to the Proceeds of Livestock Clearing Account (0263).
  • Verifies the market value against the prior year-end stock valuation.
  • Processes a journal to recognise the sale, cost of goods sold and elimination of asset as follows:
Debit/CreditAccountDescriptionAmount
Debit0263Proceeds from Livestock Clearing AccountTotal proceeds of sale
Credit3024Beef Cattle SalesTotal proceeds of sale
3025Calf Sales
3026Cull Cow Sales
3028Horse Sales
3030Sheep Sales
3032Deer Sales
Credit0741Beef Cattle - Previous yearAverage asset value of livestock as at previous year-end stocktake
0742Deer - Previous year
0743Sheep - Previous year
0744Horses - Previous year
Debit1418Revaluation Reserve - Beef CattleAverage reserve value of livestock as at previous year-end stocktake
1419Revaluation - Reserve Deer
1420Revaluation - Reserve Sheep
1421Revaluation - Reserve Horses
Debit/Credit7604Cost of goods sold - LivestockDifference 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/CreditAccountDescriptionAmount
Debit0746Beef Cattle - This yearMarket valuation as advised by School
0747Deer - This year
0748Sheep - This year
0749Horses - This year
0752Reptiles - This year
Credit2768Contribution of assets

In the event of a death

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

Debit/CreditAccountDescriptionAmount
Debit7604Cost of good sold - LivestockMarket valuation as advised by School or cost
Credit0746Beef Cattle - This year
0747Deer - This year
0748Sheep - This year
0749Horses - This year
0752Reptiles - This year

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

Debit/CreditAccountDescriptionAmount
Debit1418Revaluation reserve - Beef CattleAverage reserve value of livestock as at previous year-end stocktake
1419Revaluation - Reserve Deer
1420Revaluation - Reserve Sheep
1421Revaluation - Reserve Horses
1422Revaluation - Reserve Reptiles
Credit0741Beef Cattle - Previous yearAverage asset value of livestock as at previous year-end stocktake
0742Deer - Previous year
0743Sheep - Previous year
0744Horses - Previous year
0751Reptiles - Previous year
7604Cost of goods sold - LivestockDifference 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:

LivestockDebit/CreditAccountDescriptionAmount
Market value greater than assets holdingsDebit0741Beef Cattle - Previous yearMarket valuation as advised by School less sum of "This Year" and "Previous Year" asset accounts
0742Deer - Previous year
0743Sheep - Previous year
0744Horses - Previous year
0751Reptiles - Previous year
Credit1418Revaluation Reserve - Beef CattleMarket valuation as advised by School less sum of "This Year" and "Previous Year" asset accounts
1419Revaluation Reserve - Deer
1420Revaluation Reserve - Sheep
1421Revaluation Reserve - Horses
1422Revaluation Reserve - Reptiles


OR

LivestockDebit/CreditAccountDescriptionAmount
Market value less than assets holdingsDebit1418Revaluation Reserve - Beef CattleSum of "This Year" and "Previous Year" asset accounts less market valuation
1419Revaluation Reserve - Deer
1420Revaluation Reserve - Sheep
1421Revaluation Reserve - Horses
1422Revaluation Reserve - Reptiles
Credit0741Beef Cattle - Previous yearSum of "this Year" and "Previous Year" asset accounts less market valuation
0742Deer - Previous year
0743Sheep - Previous year
0744Horses - Previous year
0751Reptiles - Previous year


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