Receipts and Payment Account Full Explanation

 Meaning: The Receipts and Payments Account is a Real Account. The day to day business activities of a 'Not For Profit" concern are recorded in a Cash Book and then they are posted to the Ledger Account. Credit Transactions are not recorded in Receipts and Payment Account. It is an elementary form of account like School, Colleges, Charity firms, Society, club, etc. It is a summary of Cash and Bank transactions. All the transactions related to receipts are recorded in debit side and payment transaction are in credit side.

Types of Receipts in Accounting:

There are Two Kinds of Receipts are:

1) Capital Receipts 2) Revenue Receipts

1) Capital Receipts: Receipts which are non-recurring in nature and it is not form of regular income is a capital receipts. Example: Life Membership Fees, Donation, Sale of Fixed Assets, etc.

2) Revenue Receipts: Receipts which are recurring in nature and represent regular income is a revenue receipts. Example: rent, Interest, Discount, Subscription, etc.

Types of Payments term:

1) Capital Expenditure: The Expenditure which are non-recurring in nature. These expense are shown on Assets side and their Balance are carried forward to next accouning peirod.

2) Revenue Expenditure: These expenses are recurring in nature. The benefit of these expenses are enjoyed immediately.

3) Deferred Revenue Expenditure: Deferred revenue expenditure is actually a revenue expenditure. such expenditure is incurred for receiving benefits for more than a year.

 

Receipts and Payment Account 

Dr.                                                                                                                               Cr.

Receipts	Amount	Amount	Payment	Amount	Amount
To Cash in Hand		**	By Balance b/d (Bank Overdraft)
To Cash at Bank		**	By Salaries
To Subscriptions			Previous year	**
Previous year	**		Current Year	**	**
Current Year	**		By Rent Rates & Taxes
Next Year	**	***	Previous Year	**
To Entrance Fees		**	Current Year	**
To Admission Fees		**	Next Year	**	**
To Life Membership Fees		**	By Printing and Stationery		**
To Legacies		**	By General Expenses		**
To Govt. Grants		**	By Interest on Bank loan		**
To Donations for specific fund		**	By Electricity Charges		**
To Donation (General)		**	By Audit Fees		**
To Dividend Received		**	By Tournaments Exp.		**
To Sundry Income		**	By wages		**
To Sale of old News		**	By Purchases of Sport Material		**
To Sale of old Materials		**	By Insurance		**
To Miscellaneous Receipts		**	By Telephone /Mobile Expense		**
To Tournaments Receipts		**	By bank Charges		**
To Cricket Fees		**	By Postage		**
To Tuition Fees		**	By Conveyance		**
To Term fees		**	By Expenses for Annual function		**
To Collection of Fine		**	By Fixed Deposit		**
To Locker Rent		**	By Purchase of Fixed Assets		**
To Exam Fees		**	By Office Expense		**
To Balance c/d (Bank Overdraft)		**	By Repairs		**
			By balance c/d
			Cash in Hand	**
			Cash at bank	**	**