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Web Notes

Not for profit Organization

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Types of Incomes & expenses in an NPO

Receipts & payment account

Ø Real Account

ØBased upon cash basis of Accounting

Ø Debit side records the cash received during the year

Ø credit side records the cash paid during the year

Receipts & payment account

Particular

Amount

Particular

Amount

Balance b/d

Cash in hand

Cash at bank

Capital Receipts

Revenue Receipts

Balance c/d

Cash at bank

(Bank overdraft)

Balance b/d

Cash at Bank(overdraft)

Capital payments

Revenue payments

Drawings

Balance c/d

(closing balance)

Cash in hand

Cash at bank

Receipt & payment account

Particular

Amount

Particular

Amount

Balance b/d

Cash in hand

Cash at bank

Capital Receipts:

Legacies

Sale of office furniture Sale of sports equipments

Donations for special purposes e.g., building, prizes etc.

Life membership fees

Sale of investments

Endowment fund receipts

Receipt on account of special funds e.g., Prize fund, tournament fund etc.

Interest on specific fund

Investments

Entrance fees

Revenue Receipts:

Subscriptions

General donations

Proceeds from entertainments

Interest or dividends sale of old newspapers, waste papers etc

Miscellaneous receipts

Balance c/d

Cash at bank (Bank overdraft)

Balance b/d

Cash at Bank(overdraft)

Capital payments:

Building construction

Sports equipments or materials

Cost of leasehold land

Investments

Advance for purchase of buildings

Government's loan

Furniture

Revenue payments:

Prizes paid

Postages

Honorarium

Expenses on special food to patients

Entertainment expenses

Insurance, rent, salaries

Advertisement

Audit fee

Telephone, electric charge

Gardening

Newspapers and periodicals

Printing and stationery

Bar expenses

Up-keep of lawns

Municipal taxes

Charity

Printing of year book

Drawings

Balance c/d (closing balance) Cash in hand Cash at bank

There will be either or the two amounts i.e., bank overdraft or cash at bank and not both

Q. 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 ? 10,000; Subscriptions ? 60,000; Donations ? 10,000.
Payments: Rent ? 15,000; Postages ? 1,000; Newspapers and Magazines ? 8,000; Investments ? 30,000; Stationery ? 4,000; Entertainment Expenses ? 3,000; Miscellaneous Expenses ? 2,000.
Show the Receipts and Payments Account for the year ended 31st March, 2019

Q. 2 From the following information, prepare Receipts and Payments Account of Long-town Sports Club for the year ending 31st March, 2019:

Particulars

Amount

Particulars

Amount

Opening Balance:

Cash in Hand

Cash at bank

Subscription Received:

2017-18

2018-19

2019-20