Format of Receipts and Payments Account Part 2

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Receipts and Payments Account for the year ending on ………

Format of Receipts and Payments Account: Receipts and Payments Account for the Year Ending on ………
Title: Format of Receipts and Payments Account: Receipts and Payments Account for the year ending on ………

Dr

Cr

Particulars

Amount (Rs.)

Particulars

Amount (Rs.)

Balance b/d:

Cash

Bank

Donations

Legacies

Membership fees

Entrance fees

Subscriptions

Lockers Rent

Sale of fixed assets

Interest on investments

Miscellaneous Receipts

Sale of refreshments

Purchase of Assets

Printing & Stationary

Repairs & Renewals

Newspapers/Magazines

Rent and Taxes

Postage

Investments

Conveyance

Honorarium

Charity

Insurance Premium

Telephone charges

Balance c/d:

Cash

Bank

Important Items of R&P Account:

  • Subscription fee: It is a regular payment made by the members annually. It may pertain to previous year or next year as advance payment.

  • Life time membership fee: Special fee charged to a person who can have membership for life time. It is a capital receipt for the organization.

  • Endowment Fund: Fund which provides permanent means of support for the organization.

  • Donation: It is the amount received in the form of gift may be by individuals, firms, government or any other body. The donation could be either for specific purpose (e.g. establishment of school, books or medical expense etc.) or for general purpose.

    Donation amount could be anything starting from 1 rupee.

  • Legacy: Amount received by organizations as per the will of a deceased person.

  • Purchase of fixed assets like buildings, furniture etc.

  • Purchase of items like stationary, sports material, drugs and medicines etc.

  • Payment of Honorarium – Remuneration paid to the persons who took voluntary participation in the management of the organization.

  • Charity – payments made to the people who are in need.

  • Salaries paid to employees, Sale of fixed assets and other items etc.

Difference between Receipts and Payments Account and Cash Book:

Table of Difference between Receipts and Payments Account and Cash Book
Title: table of Difference between Receipts and Payments Account and Cash Book

S. No

Receipts and Payments Account

Cash Book

1

2

3

4

5

Prepared at the end of accounting period.

Every item only appears once.

Serves the purpose of Trial Balance to prepare Income and Expenditure A/c and Balance Sheet.

It reflects the activities of the organization.

Prepared only by NPOs

Prepared on day to day basis.

Items may appear no. of times.

Just to record all cash transactions.

Just to record day to day cash transactions.

Prepared by organization means to earn profit.

Example: From the information given below prepare Receipts and Payments Account for the year ending 31st December, 2006.

Table from the Information Given below Prepare Receipts and Payments Account for the Year Ending 31st December, 2006.
Title: table From the information given below prepare Receipts and Payments Account for the year ending 31st December, 2006.

Receipts and Payments Account

Cash Book

Opening Balance:

Cash in hand 1650

Cash at bank 18250

Subscription 15000

Entrance fees 1200

Donation 18000

Salaries 16000

Stationery 500

Insurance Premium 800

Sale of old furniture 1540

Interest on Securities 3670

Locker Rent 4500

Purchase of Books 10000

Purchase of Sports material 20000

Purchase of Bicycle 2000

Sale of Investment 25000

Life Membership Fees 4000

Rent paid 12000

Purchase of Development bonds 10000

Closing Balance:

Cash in hand 1510

Cash at Bank 20000

Solution:

Receipts and Payments Account for the year ending on 31st Dec, 2006

Dr. Cr.

Table of Receipts and Payments Account for the Year Ending on 31st Dec, 2006
Title: table of Receipts and Payments Account for the year ending on 31st Dec, 2006

Particulars

Amount (Rs.)

Particulars

Amount (Rs.)

Balance b/d:

Cash

Bank

Donations

Life Membership fees

Entrance fees

Subscriptions

Lockers Rent

Sale of old furniture

Interest on securities

Sale of investment

1650

18250

18000

4000

1200

15000

4500

1540

3670

25000

Salaries

Stationery

Insurance Premium

Purchase of Books

Purchase of Sports Material

Purchase of Bicycle

Rent Paid

Purchase of Development bonds

Balance c/d:

Cash

Bank

16000

500

800

10000

20000

2000

12000

10000

1510

20000

92,810

92,810

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