Physical accounts maintain an inventory of the number of livestock or commodity on hand and movements that affect those numbers. Physical Accounts are maintained on an accounting period basis. The closing balance at the end of the accounting period is carried forward to the next twelve month period.
The farm management physical accounts maintain records for different types of livestock or commodities within each enterprise. For example, the number of ewes, rams, hoggets and lambs within a sheep enterprise can be maintained separately. As livestock age and move from one category to another, the necessary adjustment can be made to each category physical account.
Making Entries in Physical Accounts
