Create the Perfect Receipt Format for Payment for Sales Seamlessly

Receipt format for payment for Sales

so today in this lesson i'm gonna show you how to prepare receipts and payment account this is a very common topic in non-profit organization but sometimes many students will confusion when they try to prepare this account okay so here today first of all we know what is resident payment account then we will have an example we will solve this question here we will see how to prepare this account here so what is receipt and payment account receipt and payment account is a consolidated summary of cash book of an organization a non-profit organization prepares receipt and payment account at the end of the year it records all cash and bank transactions of both capital and revenue nature receipt and payment account does not include any non-cash transition such as depreciation hours 10 receivables and payables so here it is just a cash book in the debit side we used to record cash recidia on the credit side we used to record cash payment same thing here if we see that the organization receives any kinds of cash will be debited here in this site and if there is any payment will be recorded they are okay so here cash increased will be on the debit side and cash decreased will be recording in the credit side okay so let us have a look at the question on this screen does that sports club has a shop which sells sportswear okay the following details delayed to the shop for the year ended 29th february 2020 opening inventory closing limited purchase and markup for a person here disinformations are given because we need to calculate sales in this question there is no sales but when we prepare receipts and payments account we need to include sales by selling goods the organization receives money receipts cash so it will be debited it will be included here on the debit side okay then wall street on the question all the shop sales and purchases are for cash okay all the clubs receipts are paid into the bank and all payments are made by cheque okay on first march 2019 the club's bank balance was with overturned by 845 dollars okay over john so bank balance must be debited yeah it is an asset for the organization so receipts and payment account will have debit balance here but in this question the bank balance was overdrawn so it is a liability for this club in this case we have to write balanced bd on the credit side okay very good then what is next in addition to the shop sales and purchase the following receipts and payments were made during the year ended 29 february 2020 okay here some inflammations are given the payments and receipts are given we will include them here okay so first of all we have to record balance pd means opening balance yeah so let us try the date first the club financial year started on march 2019 okay so let us write here 2019 march 1st okay so here we will write balance bd bd means broad down okay so this is the opening balance of this club so it is here 845 dollars so let us write here okay very good what is your transitions here given subscription received eleven thousand four hundred dollars okay received when subscription received in this case the balance in the bank will be increased yeah so it will be here in the debit side so let us write here date first 2020 february 29 because we are doing at the end of the period okay this decision payment account so we will write here subscription okay the amount is here eleven thousand four hundred dollars very good then what's next here competition fees received 915 okay competition fees received so it is received means the balance in the bank will be here increased because the club receives money okay so let us write here competition fees okay competition fees it is 915 dollars very good then what is our next item here payment for competition prices 390 it is a payment yeah so payment will be included there this side all received will be included here okay when clubs make payment in this case the balance in the bank will be decreased yeah so decreasing will be recorded on the credit side so let us write here the date first 2020 for 2029 okay so we write here competition price 390 dollars okay good next item is here purchase of fittings four thousand dollars when clubs purchase something so club has to pay money in this case the balance in the bank will be decreased so we'll be recorded on the credit side we can write here fittings and the amount is here four thousand dollars okay then what is next item rent and insurance 4575 okay rented insurance it is a payment it is an expense for the club so expense will be recorded here on the credit side okay so let us right here rent and insurance okay it is 4575 very good we record it okay what is next item here which is of shop assistant two thousand dollars okay which is it is also an expense so it is a payment as well so it will be recorded on the credit side so let us write here which is the amount is in the question two thousand dollars okay then what do you have next there is nothing left we recorded all the items okay but in the beginning of the question we have seen that we have purchases here seven thousand six hundred dollars okay so we have to record this purchase as well so purchase this payment will be recorded here on the credit side so let us write here purchase 7600 dollars we have opening inventory closing inventory and markup but here in the question there is no sales given how to calculate sales okay i have a video on this topic you can watch it i'll put the link here in the i button you watch then you come back to this lesson okay so there we calculated sales the amount was 10 542 okay so when it is sales the club receives money by bank yeah so balance of bank will be here increased that means it will be recorded here on the debit side okay so let us write here sales it is 10 542 dollars okay now we are done with recording all the items all the transitions whatever given in the question so once again all payments will be recorded on the credit side all receipts will be recorded on the debut site okay so let us have a look at the requirement prepare the receipts and payments account for the zed sports club for the year indeed 29th february 2020 balance the account and bring down the balance on first march 2020 okay so we need to balance it how to balance it it's very simple don't worry first of all you have to compare this debit column to the credit column why because you need to know which column is greater in money okay in value so here if we compare these two columns we see that in the debit column we have more okay so if we total this debit column first of all what we get 22 000 eight hundred fifty seven okay so what to do now we have to take the same amount to the opposite side that means credit column okay so let us take it here in the create column so here it is same amount 22 857 okay now what to do from this total we need to subtract this all amounts in the credit column okay so if we subtract this all amount we receive here 3447 okay so what is this this is the closing balance which is a requirement in the question okay so let us write here balance cd okay so the date for balance series is given in the question but still you can remember that the balance cities date will be always the last day of the financial year okay so here the last day of financial year is 2020 february 29th so let us start here 2020 february 29 okay then what to do then we have to bring down this balance okay how to do it just we have to take the same amount to the opposite side but here the balance city is above the title and balance video will be below the total okay how let us see here so we will write here balance balance bd bd means brought down yeah so here it is the same amount 340 seven dollars okay now what date you need to write here with this balance video written in the question it is first march 2020. even if the date is not written in the question you have to write okay so what it will be so for balance pd the date will be the first day of next accounting period okay so here on 29th february 2020 the accounting period will be ended here okay but it will be started again for new period in 2020 march 1st okay now it is done completed we did everything we recorded all the transactions we have carried down this balance and we have brought down this balance