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Question 2 Chapter 1 of +2-A
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EXERCISE
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
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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 | |||
| Particulars | Amount | Particulars | Amount |
| 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 | ||
| 84,390 | 84,390 | ||
Receipts:
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.
Payments:
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.
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Check out our following article of Not-For-Profit Organisation to clear the doubt about the meaning of this type of business: –
Not-for-Profit Organisations – Meaning and Overview
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
