A wealthy landowner stood on the deck of his mansion and cast his eye over the vast land of his estate. The lack of rain was a worry for many farmers in the area. Pondering the situation, he realised that farmers would soon need something to feed their animals. He summoned his son. They needed to plant crops that grew quickly and could be eaten by animals. The landlord put his son in charge of the new business venture which he named Red Maize. The landlord provided his son with a tractor worth $52,000, 50 hectares of land worth $450,000 and a plough worth $2,000. He also gave him enough cash to purchase 75 sacks of maize seed.The landlords son took the resources he had been given and made arrangements with a farming supplies store to purchase $2,000 worth of fertiliser. It was agreed that payment for the fertiliser could be made next month

d. What accounting name would be used in Red Maizes accounts to describe the amount that is owed for the fertiliser?

e. How would the arrangement the landlords son made with the farming supplies store be classified in the financial accounts of Red Maize? You are required to state the name of the statement (final report) it would appear in and where it would appear in that statement (the sub-classification).

f. How would the fertiliser be recorded in the financial accounts of Red Maize? You are required to state the name of the statement it would appear in.

g. What is the name of the financial statement that records the value of the resources belonging to an entity and the rights others have to those resources?