Question 2 Chapter 1 of +2-A
Receipts and Payment Account
2. Bengal Cricket Club was Inaugurated on 1st April 2018. It had the following Receipts and Payments during the year ended 31st March 2019
Receipts: Entrance Fees Rs 10,000; Subscriptions Rs 60,000; Donations Rs 10,000.
Payments: Rent Rs 15,000; Postage Rs 1,000; Newspapers and Magazines Rs 8,000; Investments Rs 30,000; Stationery Rs 4,000; Entertainment Expenses Rs 3,000; Miscellaneous Expenses Rs 2,000
Show the Receipts and Payment Account for the year ended 31st March 2019
The solution of Question 2 Chapter 1 of +2-A
|In the Books of Bengal Cricket Club|
|Receipts and Payment A/c
|as on 31st March 2019
|To Entrance Fees A/c||10,000||By Rent A/c||15,000|
|To Subscription A/c||60,000||By Postage A/c||1,000|
|To Donations A/c||10,000||By Newspaper and Magazines A/c||8,000|
|By Investments A/c||30,000|
|By Stationery A/c||4,000|
|By Entertainment Expenses A/c||3,000|
|By Misc. Expenses A/c||2,000|
|By Balance c/d||17,000|
It means that when a business has received cash from any source. All receipts are written on the Debit side of the Receipts and Payment account.
It means that when a business has paid cash to anyone to run business operation. All Payments are written on the Credit side of the Receipts and Payment account.
Receipts and Payment Account:
It means that in which we record the all-cash/bank related transaction of Not-for-profit businesses, which occur during the year. This is similar to the cash account. It includes all previous as well as future year transactions (related to payment and receipts) which occur in the current year.
Check out our following article of Not-For-Profit Organisation to clear the doubt about the meaning of this type of business: –
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Also, Check out the solved question of previous Chapters: –
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book