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What is receipts and payments account?

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प्रश्न

What is receipts and payments account?

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उत्तर

Receipts and Payments account is a summary of cash and bank transactions of not-for-profit organisations prepared at the end of each financial year.

It is a real account in nature. The receipts and payments account begins with the opening balances of cash and bank and ends with closing balances of cash and bank. All cash receipts are shown on the debit side and all cash payments are shown on the credit side of this account. All cash receipts and cash payments whether of capital or revenue nature will be recorded irrespective of the period for which the amount is received or paid, it is recorded if cash is received or paid during the year.

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 2: Accounts of not–for–profit organisation - Very short answer questions [पृष्ठ ७०]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
पाठ 2 Accounts of not–for–profit organisation
Very short answer questions | Q II 2. | पृष्ठ ७०

संबंधित प्रश्‍न

Write the word/phrase/term, which can substitute the following sentence.

All such receipts which are non-recurring in nature and not forming a part a regular flow of income.


Receipts and payments account is a _________.


From the information given below, prepare the Receipts and Payments account of Kurunji Sports Club for the year ended 31st December, 2018.

Particulars Particulars
Cash in hand (1.1.2018) 4,000 Paid for printing charges 2,500
Salaries paid 3,000 Lockers rent received 1,000
Life membership fees received 10,000 Tournament receipts 14,000
Subscription received 15,000 Tournament receipts 10,500
Rent received 2,000 Investments purchased 25,000

From the following Receipts and Payments Account and additional information provided by Ramanath Club, Prepare Income and Expenditure Account for the year ending on 31st March 2021.

Receipts and Payments Account for the year ending 31st March, 2021
Receipts Amount (₹) Payments Amount(₹)
To Balance b/d 48,000 By Salaries and Wages:    
To Subscription 95,000 2019-20 10,600  
To Entrance Fee 1,56,000 2020-21 1,03,200 1,13,800
To Locker rent 50,000 By Sundry expenses   47,000
To Interest on 8% govt. Securities 5,400 By Refreshment expenses   60,400
To Revenue from refreshment 52,000 By Telephone bill   5,000
To Sale of old newspapers 4,600 By Rent & Rates   24,000
To Sale of furniture (Book value: ₹ 11,000) 12,000 By Library Book   25,000
    By 8% Govt. Securities   30,000
    By Honorarium to Secretary   5,000
    By Balance c/d   1,12,800
  4,23,000     4,23,000

Additional Information:

  1. Subscription received during the year includes ₹ 25,000 as donation for Building.
  2. Telephone bill unpaid as on March 31, 2020, was ₹ 4,000 and on March 31, 2021, ₹ 2,600.
  3. Value of 8% Government Securities on March 31, 2020, was ₹ 80,000.
  4. Additional Government Securities worth ₹ 30,000 were purchased on March 31, 2021.

Write the steps in ascending order of Conversion of a Receipt and Payment Account into an Income and Expenditure Account:

(i) Adjusting the revenue receipts on the debit side to include outstanding incomes and incomes relating to the current year received earlier and to exclude amounts received in arrears or in advance.

(ii) identifying and showing non-cash expenses and losses on the debit side of the Income and Expenditure Account.

(iii) computing and showing profits/losses from trading and/or social activities on the credit/debit side of the Income and Expenditure Account.

(iv) Ascertaining the surplus or deficit as the dosing balance of the Income and Expenditure Account.

(v) adjusting revenue payments on the credit side.


Consider the following statements

Statement 1 - "Receipt and Payment Account records the receipts and payments of revenue nature only".

Statement 2 - "Receipt and Payment Account records the receipts and payments of revenue nature and capital nature".


Sports expenses ₹ 27,000 (excluding ₹ 7,000 unpaid expenses). The amount to be credited to Receipts and Payments Account will be:


Donations received for a special purpose ______


Receipts and Payments Account features include:


The Receipts and Payments Account is a summary of ______.


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