Statement of Affairs

Receipt and payment account

Receipt and Payment account is like a consolidated cash book made on annual basis. All the cash receipts and cash payments made in a year are recorded in the receipt and payment account on a consolidated basis e.g. subscriptions received from the members on different dates, shall be shown on the receipts side of the Receipt and Payment Account as one item with its total amount. In simple words, it can be described as the summary of cash and bank transactions.

Preparation of receipt and payment account

i. All Receipts and Payments made in a year are to be recorded on a consolidated basis irrespective of whether they pertain to the current period, previous period or succeeding period.

ii. While recording receipts or payments no distinction is made between receipts and payments of capital and revenue nature. All receipts and payments are to be recorded.

iii. Non-cash transactions/items like depreciation are not to be recorded.

iv. None of the receivable income and payable expense is to be entered in this account as they do not involve inflow or outflow of cash.

v. The opening balance in the Receipt and Payment Account represents cash in hand/ cash at a bank which is shown on its receipts side. No distinction is made in receipts/payments made in cash or through a bank. With the exception of the opening and closing balances, the total amount of each receipt and payment is shown in this account

Format of receipt and payment account

Receipt and Payment account

Details	Amount	Details	Amount
Balance b/d	xxx	Balance b/d (Bank overdraft)	xxx
Cash in Hand/bank	xxx	Wages and salaries	xxx
Subscriptions	xxx	Rent	xxx
General Donations	xxx	Rates and taxes	xxx
Sales of newspaper	xxx	Insurance	xxx
Sales of old sports materials	xxx	Printing and stationaries	xxx
Interest on fixed	xxx	Advertisements	xxx
Sales of scraps	xxx	Sundry expenses	xxx
Proceeds from charity show	xxx	Honorarium	xxx
Life membership fee	xxx	Conveyance	xxx
Sales of investment	xxx	Purchase of investment	xxx
Entrance fees	xxx	Purchase of Asset	xxx
Sales of fixed assets	xxx	Balance c/d	xxx
Balance b/d (overdraft)	xxx