Create Your Rental Receipt Sample for NPOs Effortlessly

Rental receipt sample for NPOs

good morning children now we are going to try a question from the first chapter of Accountancy as we have done some discussion relating to the chapter let us try this question number 4 from TS grey one page one point five six question number four you can see the question before you the question is from the following information prepare receipts and payment account of long town sports club for the year ending 31st March 2019 given here is some statement relating to the club so taking this information we have asked to prepare a receipt and payment account now recently undergone as discussed earlier is a summary of cash book so while preparing receiving payment account you must remember the rules of a cash book that is it is a real account so debit what comes in read what goes out so as we start first of all you are going to draw the format of the account as you see through you this is the format of a seen payment account where we have the debit side we will take the receipts here and the credit side the payments hey as you start above you must first mention the name of the nonprofit organization for this question it is long term sports club and the heading of the account is receiving payment account for the year ended since it is prepared at the end of the financial year at the end of the accounting year so you have to mention for the year ended and the date as mentioned in the question so taking the format of the account making it ready let us start this so the recipient payment account always starts with an opening balance and the opening balance will be the opening balance of cash in hand or cash at bank or both so as for this question you are given opening balance cash in hand cash at bank so we have both so we are going to record both of this balance brought down cash in hand the amount you write in the outer column and cash at Bank or you can just mention bank also fifty thousand so always this account will start with the opening balance of cash in hand or cash at bank if provided now from the remaining information let us go one by one and see where to enter these in the account which we are preparing the next is subscription received subscription is a form of receipt okay it is a receipt for the club so you are going to mention to subscription and as you see the subscription here are for various years you have to consider all these receipts in the cash sorry in the recent payment account here we take any form of receipt whether it belongs to this year or previous year or next year okay so any form of cash or receipts received during the year be it for this year previous year or current here the total of this will come to one lakh fifty two thousand which you write in the outer column the next being furniture purchase now for engine purchase will be a form of payment so buy furniture purchased seventy thousand is the amount what follows his general donation general donation is seat to general donations twenty thousand then donation for tournament which is also a receipt or tournament which is of amount forty thousand after this the other particulars are charity given charity given will be a payment as it is given this is cash going out and so by charity going to write given which is 10,000 then salaries is a payment to employees or whoever they're in the office of this club honorarium honorarium is another form of payment and it is paid to somebody who has given his time for some help in the club in the form of our guest lecturer or maybe say for one day the person may have visited and provided some service and for that he is not commanding any any remuneration so as a of appreciation for the person the amount paid by nonprofit organization is termed as on Aradia what is next here is twelve percent investment purchased now this is will be a payment again by investments sixty thousand and an entrance fees entrance fees will be a receipt entrance fees four thousand then we have interest on 12% investments this interest what it shall be will be a receipt so two interest interest on 12% investments 6000 after this here we are given cash in hand on 31st March 2019 and cash at Bank on 21st muscle 19 that is missing so our purpose of preparing this account is to find out this balance so moving to the credit side of the account you have to enter the closing balance of cash in hand which is there in the question but what we don't have is the closing balance of cash at bank which we are going to find out so you should be writing this as buy balance carry it down to ask for cash it is there 24,000 and as for bank is what we have to find out you shouldn't be writing the question mark so now we shall be balance in this account and after the balancing the balancing figure will be the answer which we want so when we total the receipt side this total amount will come to three like 32 thousand and it indeed directly but you shouldn't be writing it first yeah you will total this side and also total the right side the right side total comes to two like 61 600 a 2 like 61 600 so as you see the debit total is heavier so that total would be entered under both sides okay after closing the columns and on subtracting three like 22 and two like 61 600 the difference is seventy thousand four hundred and that is this is our answer the cash in hand at the end of the accounting year 31st March 2019 for this club is at seventy thousand four hundred so this is how you have to prepare a receipt and payment account where to the left of the accounts or it will debit account you'll enter all the receipts okay that is receiving cash and to the credit side all the payments