Not-for-profit organization-[NPO]-important formats

what is receipt and payments accounts:

(1) receipts and payment account:– receipts and payments account is a summary of the cash book and it shown the opening cash and bank , balance the receipt and payments in cash or by cheque during an accounting period and the resultant balance of cash and bank at the end of the accounting period . all receipts (whether in cash or by cheque) are shown on the left-hand side, and all payments (whether in cash or cheque) are shown on the right-hand side:

features of receipt and payments account: 

  1. it is the summary of the cash and bank transactions, like cash book , all the receipts(capital or revenue) are debited and all the payments (capital or revenue )are credited
  2. it start with opening cash and bank balance (through sometimes they are merged)and also ends with their closing balance,
  3. it includes all cash and bank receipts and payments , whether they are related to current, past  or future periods,
  4. it does not record non-cash items(e, g , depreciation)
  5. this account is usually not a part of the double entry system, it is the duplicate of cash book in concise form, 

   format of receipts and payments account:

receipts Amountpayments Amount
To balance b/d

     Cash

     Bank

To subscription : –

    for the previous year

   for the current year

   for the next year

To entrance fees:

To donation for building

To general donation

To life membership fees

To legacy

To grant from the government

To rent

To receipts on annual sports

To sale of old sports materials

To sale of old magazines

To sundry receipts

To balance c/d * (bank overdraft ) ***


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By balance b/d (bank overdraft) *

By annual sports expenses

By salaries and wages

By rent, rates and taxes

By insurance

By furniture

By sports equipments

By books and periodicals

By Audit fees

By printing and stationery

By honorarium

By bank charges

By postage and telegram

By water and electricity

By conveyance and travelling

By sundry expenses

By annual dinner expenses

By investments

By balance c/d :**

        Cash**

        Bank**

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Income & expenditure account:

an income & expenditure account is equivalent to the profit and loss account of business firm.. it is prepared by matching the revenues against the expense for a specific period , usually a year. since not-for -profit organisation do not earn profit (or incur loss) , they do not prepare profit and loss account but for evaluating the financial conditions of the organisation , they prepare income and expenditure account at the end of the year,, this account shows excess of income over expenditure :

features of income and expenditures account;

  1. it is a nominal account prepared at the end of the financial year for finding out the surplus or deficit of the period 
  2. it is prepared by matching expenses against the revenues of the period 
  3. all capital expenditures and incomes are excluded.. 
  4. only current year, s incomes and expenses are considered 
  5. it also records non-cash items such as bad debts , depreciation etc, 
  6. all current year, s revenue expenses and losses are recorded on its debit side and all income (revenue) and gains on its credit side
  7. the balance of this account represents either the excess of income over expenditure (if the total of the credit side is more than that of the debit side) or excess of expenditure over income (if the total of the debit side of this account is more than that of its credit side)

format of income and expenditure account:

 for the year ending 

ExpenditureAmount Income Amount
To salaries and wages
Add: out, at the end

Less: prepaid at the end

Add: prepaid in the beginning

Less: out, in the beginning

To rent rates and taxes

To insurance 
premium

To depreciation on furniture and sports equipments

To books and periodicals

To Audit fees

To printing & stationery

To honorarium

To bank charges

To postage and telegram
To electricity and water

To conveyance and travelling

To surplus i. e excess of income over expenditure
 
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By subscription received

Add: out, at the end

Less: advance at the end

Add: advance in the beginning

Less: out in the beginning

To entrance fees

(only that portion which is to be treated as revenue)

By general donation

 
By life 
membership fees (only that portion which is to be treated as revenue)

B y profit on annual sports

(receipts—expenses)

By profit on sale of provisions
Sale+ closing stock—purchase –opening stock )

By rent of club hall

By dividend

By deficit**
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