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Tamil Nadu Board of Secondary EducationHSC Commerce Class 12

What is receipts and payments account?

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Question

What is receipts and payments account?

Short/Brief Note
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Solution

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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Chapter 2: Accounts of not–for–profit organisation - Very short answer questions [Page 70]

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Samacheer Kalvi Accountancy [English] Class 12 TN Board
Chapter 2 Accounts of not–for–profit organisation
Very short answer questions | Q II 2. | Page 70

RELATED QUESTIONS

State the meaning of Receipt and Payment Account.


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

Accounts which records only cash transactions in case of Not for Profit Concern.


In Receipts and Payments Account the summary of _____ transactions are recorded.


Receipts and payments account records receipts and payments of _____________.


Pick the odd one out:


Which of the following is not a capital receipt?


A donation received for a special purpose is a ______


The Receipts and Payments Account is a summary of ______.


From the following Receipts and Payments Account of “Matsyodari Engineering College, Aurangabad” for the year ending on 31st March, 2020 and additional informations, prepare Income and Expenditure Account for the year ending 31st March, 2020 and Balance Sheet as on that date:

Dr. Receipts and payment Account
for the year ended 31st March, 2020
Cr.
Receipts Amount ₹ Payments Amount ₹
To Balance b/d   By Salaries to Teaching
Staff
10,00,000
Cash in hand 8,000 By Electricity charges 50,000
Cash at bank 1,00,000 By Books 64,000
To Interest 50,000 By Furniture 55,000
To Subscription 30,000 By Stationary 24,000
To Life Membership Fees 40,000 By Fixed Deposit 7,00,000
To Donation 5,00,000 By Balance c/d  
To Tuition fees 11,50,000 Cash in hand 20,000
To Term fees 2,00,000 Cash at bank 2,25,000
To Sundry Receipts 10,000    
To Admission Fees (Revenue) 50,000    
  21,38,000   21,38,000

Additional information:

Particulars 01.04.2019 31.03.2020
Books 7,00,000 7,00,000
Furniture 3,19,000 3,00,000
Building fund 10,00,000 ?
Fixed Deposit 9,10,000 ?
Capital Fund 10,37,000 ?

Adjustment:

  1. 50% Donations are for Building fund and the balance is to be treated a Revenue Income.
  2. Outstanding subscription ₹5,300.
  3. Life Membership fees are to be capitalised.

Mumbai University prepares ______ Account instead of a Profit and Loss account.


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