Accounts PresentationTOPIC – Receipts & Payment A/C By – Aatman Kothari XII “C”
DEFINATION & EXPLANATION• Receipt and payment account is a mere summary of cash book for a year. It begins with the cash in hand at the commencement and ends with that at the end of the year. Similarly to cash account, in receipts and payments account receipts are shown on the debit side while payments are shown on the credit side, without any distinction between capital and revenue. Moreover, it does not include an unpaid expenditure ,not any unrealized income relating to the period under review and so fails to reveal the financial position on the concern.
FORMAT Receipts Payments ` `To Balance b/d : By general expenses XX Cash in Hand XX By salaries and XX Cash at Bank XX XX wages XXTo Annual subscription XX By furniture XXTo Life membership XX By rent, rates & XXfees XX taxes XXTo Entrance fees XX By printing & XXTo interest on XX stationarysecurities XX By RepairsTo sundry receipts XX By Honorarium XXTo Rent of Hall, Lawn By Balance c/d :To Donation Cash in Hand XX Cash at Bank XX XXX XXX