Create an Itemized Receipt Example for NPOs Effortlessly

Itemized receipt example for NPOs

[Music] hello friends welcome back to my youtube channel i hope you liked my previous videos so please subscribe and press the bell icon to get the latest videos notification so friends in this video i will cover the remaining part of receipt and payment account theory and will explain some numerical questions related to receipt and payment account before discussing this topic first we have to recall some important points related to receipt and payment account so friends you all know receipt and payment account is a summary of cash book it start with an opening balance of cash and ends within closing balance of cash only cash receipts and cash payments are recorded in it all receipts are entered in its debit side and all payments are entered in its credit side of this account the same time payment account is prepared to know the cash balance and financial position of any organization [Music] previous videos [Music] now we will discuss one important question of theory receipt and payment account does not explain the true financial position of any organization explained with reason foreign so first reason is it is a summary of cash book and only cash receipts and cash payments are recorded in it you reset and payment account massive cash related transactions whether it is related with receipt or whether it is related with payment second point both capital and revenue items are entered in it no matter whether they belong to current year previous year or upcoming years is we cannot know the last year balance of assets liabilities and capital of this account the fourth reason is the difference of this account always shows debit balance of cash balance and then fifth and the last reason is no information regarding closing stock of business is given in this account so hello friends now we will solve question number one first i will read question prepare receipt time payment account of chetna club for the year ended on 31st march 2018 cash balance 1st april 2017 rupees 4390 subscription received last year rupees 6 000 current year rupees 33 000 and next year rupees 4000 donation received rupees 8 000 entry fees rupees 4300 rent received rupees 5250 electricity charges rupees 3440 wages rupees 500 interest received rupees 2950 insurance rupees 310 printing and stationery rupees 350 century expenses rupees 900 salary rupees 16 000 honorium to secretary rupees 7500 rent of club building rupees 1750 is accrued outstanding expenses of printing and stationery rupees 150 now we will solve the question so first you have to write club name it's chetna so you have to write chetna club then in next line you have to write account name we are preparing receptive payment account so we have to write reset and payment account then in next line you have to write accounting year for the tier and it ended on 31st march 2018. then you have to draw pro forma of receptive payment account reset amount payment amount then you all know left hand side is known as recepticide and right hand side is known as payment site so you can write here debit side left hand side is debit side and right hand side is credit side now in your question first cash balance is given cash balance 1st april 2017 rupees 4390 its date is 1st april 2017 means it's opening balance so you all know first our receipt and payment account start with an opening balance and and within closing balance so we have to write opening balance here to balance broadband amount is 4390 then next in your question subscription received is given subscription received it's received and you all know subscription means cash comes in so you have to enter this on receptor site so you have to write to subscription but here in question last year subscription is is given current year subscription is given and next year subscription is also given so you have to add all three amounts last year current year and next year so amount is six thousand last year amount is six thousand current year amount is thirty three thousand and next year amount is four thousand you have to add this android amount in outer column it's 43 000 then rent donation received is given donation means cash comes in so you have to enter this on reception site to donation amount is 8 000 next entry fees is given entry fees rupees 43 000 it automatically cash comes in so you have to enter this on receipt aside to entry fees amount is 4300 then next rent received you know in rent two situations are there rent is paid and rent is received so here rent received is given so you it means cash comes in so you have to write this on receptor site to rent received amount is 5 200 and then next is electricity charges its charges means you are paying something so you have to write this on payment side by electricity charges amount is 3440 next is wages rupees 500 wages it means you are paying something your cash goes out so you have to this you have to write this on payment side by wages amount is 500 then next is interest received interest received here also two situations are there it may be received or it may be paid so interest received is given so you have to write this on receptor site to interest received amount is 2950 then next is insurance is given insurance means you are paying something you have to write this on payment side by insurance amount is 310. then next is printing and stationary rupees 350 again it's an expense and if you are doing any expense your cash goes out so you have to write this on payment side by printing and stationery your amount is 350. the next is sandra expenses it's an expenses and if you are incurring any expenses your your cash was out so you have to write this on expensive side means payment side by sendry expenses amount is 900 then next is salary salary rupees 16 000 salaries and expense your cash was out so you have to write this on payment side by salary 16 000 then next is honorium to secretary honorium means remuneration means you are giving salary to your secretary so you have to write this also on payment site by honorarium two secretary amount is 7500 then in your question rent of club building rupees 1750 is accrued you all know in receipt and payment account accrued unaccrued outstanding prepaid these kinds of adjustments are not considered here in recept and payment account so just ignore it no need to enter it the next is outstanding expenses of printing and stationery rupees 150 outstanding outstanding again it's an adjustment entry and we are not considering the adjustment entry in receipt and payment account so you have to ignore this entry also okay then you have to tally both side debit side and credit side so you have to do total first we have to add debit side total its total is 67 890 and your credit side total is 29 000 and you you know we have to tally both sides so you have to find out difference means you have to calculate sixty seven thousand nine eight hundred and ninety minus twenty nine thousand so the difference amount is thirty eight thousand and 890 38 890 its difference and this difference is known as closing balance so you have to write here by balance carried down and you can see both sides are equal now we will solve another question question number two from the following particular prepare receipt and payment account of lion club of indoor for the year ended on 31st march 2018. cash balance on 1st april 2017 rupees 6400 membership fees the club has 350 members and each has to pay annual subscription rupees 50. it is reported that 30 members have not paid the subscription of the year and 25 members have paid in advance for the next year salary rupees 1100 per month have been paid up to the month of fab 2018. rent of the club building has been paid up to the month of may 2018 at the rate rupees 400 per month furniture an advance of rupees 1100 was paid for furniture in december but furniture worth rupees 800 only was received up to the end of the year general expenses rupees 375 have been paid and rupees 45 were unpaid office expenses were rupees 550 but rupees 50 still remain to be paid now we will solve this question then first you have to write club name it's lion killer so you have to write on the top lions club in door then in next line you have to write account name we are preparing reset and payment account then in next line you have to write accounting year for the year ended on date is 31st march 2018 2018. then you have to draw proforma reset amount payment amount you all know left hand side is debit side and right hand side is credit site so you can write here debit receipt site and credit payment site then in your question cash balance on first april 2017 rupees 6400 cash balance is given and date is also given first april 2017 it means it's an opening balance we all know receipt and payment accounts start with an opening opening balance so first we have to write to balance brought down your amount is 6400 then membership fees membership fees means cash comes in so you have to write membership fees on receptor site to membership fees but something is given the club has 350 members and each has to pay annual subscription rupees 50. it is reported that 30 members have not paid the subscription of the year and 25 members have paid in advance for the next year means in this club 350 members are there and each have to pay rupees 50 as subscription but there are 30 members who are not paying their subscription and 25 members have paid their subscription in advance so you have to write like this there are 350 members in your club each have to pay rupees 50 so your total amount is but there are 30 members who are not paying subscription amount so you have to deduct it so you have to put the sign of minus 30 into 50 so amount is 1500 so total you have to add both so amount is only you received current year subscription 16 000 but 25 members are there who are paid their subscription in advance so you have to put the sign off plus 25 into 50 and amount is 1250 so you have to add this and amount is 17 thousand two hundred and fifty the next salary salary salary is an expense and if you are if you are paying salary so your amount your cash goes out so you have to write this on payment side by salary but something is given salary rupees 1100 per month have been paid up to the month of feb 2018. okay 1100 is your per month salary and only we are receiving the amount of paid up to the month of feb 2018 means march salary is outstanding is unpaid so we are receiving only 11 month salary so we have to write 1100 into 11 so amount is 12 hundred okay the next is rent rent means you are paying rent your cash was out so you have to write rent on payment site buy rent but something is given rent of the club has been paid up to the month of may 2018 at the rate rupees 400 per month each and every month rent is 400 rupees four hundred rupees and our accounting year and on 31st march 2018 means we are paying extra amount of rent okay so 12 months current year plus april and may means 14 months went your pay so we have to write 400 into 14 so amount is 5600 then next is furniture okay we are spending money on purchasing of furniture means your cash goes out so you have to write this on payment side by furniture but something is given an advance of rupees 1100 was paid for furniture in december but furniture the next is general expenses expenses means you are spending money your cash goes out so you have to write this on payment site buy general expenses but something is given rupees 375 have been paid and rupees 45 were unpaid means unpaid you all know unpaid means but we are paying rupees 375 so we have to write the amount of rupees 375 next is office expenses office expenses again it's an expense so you have to write this on payment side by office expenses but something is given office expenses where rupees 550 but rupees 50 still remain to be paid office expenses hamara waited 550 rupees but 50 rupees means we are paying only rupees 500. so we have to deduct it you have to write 550 minus 50 so amount is 500 then you have to tally both side debit side as well as credit side so you have to do the total of debit side and credit side debit side total is 23 650 then you have to add credit side its total is nineteen thousand six hundred and seventy five so here you don't know so twenty three thousand six hundred and fifty so first we have to find out the difference so 23 650 minus 19675 so difference amount is 3975 3975 is your difference and this difference is known as closing balance you all know receipt and payment accounts start with an opening balance and end with and closing balance by balance carried down so you can see both sides are equal if you like this video please like subscribe and share and press the bell icon to get the latest videos notification you