Create a Money Receipt Example for Accounting Effortlessly

Money receipt example for Accounting

hello everyone welcome back in this video we'll discuss about what is the recipient account what is it it is simply uh yes it is simply a summary of cash and bank transactions for the year for the organization it gives full information about all reception payments under different heads and is prepared with the help of a cash book the cash book contains a record of all the receipts and payments in a chronological order but the receipt and payment account will simply show the total amount received or paid under each head example suppose a club receives subscription from its members on different dates in a year these are recorded in the cash book separately on those dates but in the receipt and payment account the total amount of subscription received during the year will appear as one item on the debit side similarly salaries paid to the staff will appear in cash book every month whereas the receipt and payment account will simply show the total amount of salaries paid during the year on its credit side the opening balance of receipt and payment account represents the cash and bank balance at the beginning of the year whereas the difference between the total of the two sites reflects the closing balance of cash and bank at the end look is this illustration here in the picture this is a resident payment account of zenith golf club debit side that is left hand side is received right side right-hand side that is your payments it starts with balance brought down of cash 3600 bank 4000 the total balance of cash and bank is 7600 then it has subscription for 16 17 18 total receipt okay so it's given four thousand thirty seven thousand and one thousand eight hundred entrance fees received is sixteen hundred industrial investment is three thousand so these are the various receipts for the club whereas on the payment side that is your credit side right hand side sub supports equipment sorry it should be support i believe oh okay whatever support equipment also can be it is twenty thousand equipments purchased then tournament expense is four thousand again another expense electricity expenses printing salaries and wages exhibition expenses these are all given on the payment side now the difference between the debit and credit side is the closing balance that is your balance carried down cash and bank 9 000 and nine thousand four hundred so boys and girls this is how a receipt and payment account looks like thank you so much for watching