What is Receipt and Payment account - Feature Image-min

In the financial Statements of Not-for-profit organisations, one of the statement Receipt and Payment account is also prepared along with the Income and Expenditure Account and Balance Sheet. 

Meaning of the Receipts and Payments account: –

It is just a summary of the all-cash transactions (including transaction done through the Bank) related to receipts and payments made by the organisation during a relevant accounting period. This account is being prepared at the end of the financial year along with the income and expenditure account and balance sheet.

The cash book and Receipts and Payment A/c both provide the same information but in a different manner. In the cash book, all the transaction are recorded in chronological order but in Receipts and Payment A/c the only summary of accounts are shown at the end of the relevant accounting period. The Receipts and Payment A/c does not give the date of Transactions. 

In the Receipts and Payment A/c, all the cash receipts are recorded on the debit side and all cash payments are recorded on the credit side of the account. 

Example of Receipts and Payments Account: –

We have created two examples for you, One is with a favourable bank balance (under draft) and another is with an unfavourable bank balance(Overdraft). These are shown as under: –

1. With Favourable Bank Balance: –

Question:

Please prepared the Receipt and payment account as of 31/03/2020 from the following information:

Name of Accounts Amount  Name of Accounts Amount 
Cash In Hand as on 31/03/201925000Investment158000
Cash at Bank as on 31/03/2019150000Land and Building450000
Subscriptions received  Legacies 400000
For 2019-205000Life Membership fee 50000
For 2020-21500000Miscellaneous Expenses 125
For 2021-2225000Miscellaneous Receipts 200
Subscription for Specific services 10000Municipal Taxes 1750
Admission Fee 15000Newspapers and Magazines, etc.5000
Advertisement 15000Office Expenses 5900
Audit Fee22500Postage and Telegram725
Books 5700Printing and Stationery 6700
Dividend Received11000Prize and rewards 12500
Donation for Specific Assets or purpose 250000Purchase of Fixed Assets495000
Endowment Fund 6000Receipts on Account of Specific Fund 75000
Entrance Fee 35000Rent paid 24600
General Donations60000Rent Received18000
General Grants15000Repair and Maintenance 8900
Grant for Specific Assets or purpose 100000Salaries 50000
Honorarium 6900Sale of old Assets 7800
Insurance 35000Sale of Scrap 1200
Interest paid 1250Sports Equipment75600
Interest Received13000X’s Loan (Repaid)60000

Solution: 

Receipts and Payments Account Examples No. 1  - What is Receipt and Payment account - format in Excel & PDF
Receipt and Payment A/c Examples No. 1

2. With Unfavourable Bank Balance: –

In this example, we have just changed the bank balance. 

Question:

Please prepared the Receipt and payment account as of 31/03/2020 from the following information:

Name of Accounts Amount  Name of Accounts Amount 
Cash In Hand as on 31/03/201925000Investment158000
Bank Overdraft as on 31/03/2019995079Land and Building450000
Subscriptions received  Legacies 400000
For 2019-205000Life Membership fee 50000
For 2020-21500000Miscellaneous Expenses 125
For 2021-2225000Miscellaneous Receipts 200
Subscription for Specific services 10000Municipal Taxes 1750
Admission Fee 15000Newspapers and Magazines, etc.5000
Advertisement 15000Office Expenses 5900
Audit Fee22500Postage and Telegram725
Books 5700Printing and Stationery 6700
Dividend Received11000Prize and rewards 12500
Donation for Specific Assets or purpose 250000Purchase of Fixed Assets495000
Endowment Fund 6000Receipts on Account of Specific Fund 75000
Entrance Fee 35000Rent paid 24600
General Donations60000Rent Received18000
General Grants15000Repair and Maintenance 8900
Grant for Specific Assets or purpose 100000Salaries 50000
Honorarium 6900Sale of old Assets 7800
Insurance 35000Sale of Scrap 1200
Interest paid 1250Sports Equipment75600
Interest Received13000X’s Loan (Repaid)60000

Solution: 

 
Receipts and Payments Account Examples No. 2  - What is Receipt and Payment account - format in Excel & PDF
Receipts and Payments A/c Examples No. 2

Format of Receipt and Payment Account: –

We have created the format of receipts and Payments A/c in PDF and Excel. These are shown as below: –

1. Format in Excel: –

Download the Excel Sheet from the below link. It has two worksheets 

  1. Format for favourable bank Balance 
  2. Format for Unfavourable Bank Balance
Microsoft excel - What is Receipt and Payment account - format in Excel & PDF
Receipts and Payments A/c Format

2. Format in PDF: –

Download the PDF from the below link. 

  1. Format of Receipt and Payment A/c – Favourable bank Balance
  2. Format of Receipt and Payment A/c – Unfavourable 

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