DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : N. USHA RANI
Designation : Lecturer
Branch : Commercial & Computer Practice
(CCP)
Institute : GPW/ Guntur
Year/Sem : III Sem
Sub-Code : CCP-302
Subject : ACCOUNTANCY-II
Topic : Non-Trading Concerns
Duration : 50 minutes
Sub Topic : Preparation of Receipts & Payments A/c

Problems - III
Teaching Aids : PPT ANIMATIONS
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Objectives

On completion of the period, you would be able to

Prepare the Receipts and Payments Account

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 Recap:

So far you have learnt the Features of Receipts and

Payments Account.
 It is similar to cash book
 Receipts posted on Debit side and Payments posted

on Credit side
 All Receipts and Payments of Capital and Revenue
nature are included in this book
 It commences with Cash/Bank opening balance
and Cash/Bank closing balance
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Preparation of Receipts and Payments
Account

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Example(1):
Prepare Receipts and Payments Account of Bombay
Gymkhana Club as on 31st December, 1999.
Rs.
Opening Rs.
balance (Bank) : 3,000 Printing & Advertisement : 350
Subscriptions : 2,500 Sundries : 55
Proceeds from Lectures : 1,000 Government Securities : 2,500
Interest on Securities : 475
Furniture : 400
Entrance fees : 500
Library Books : 350
Sale proceeds old chairs : 75
(Book value Rs.100/-) Cost of Entertainments : 700
Rent paid : 600 Closing balance (Bank) : 2,595

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Solution:
Receipts and Payments Account of Bombay Gymkana
for the year ending 31st December, 1999
Receipts Rs Payments Rs.

To balance b/d 3,000 By Rent 600

To Subscription 2,500 By Printing & Advertising 350
To Proceeds received from By Sundries 55
lectures 1,000 By Government Securities 2,500
To Interest on Securities 475 By Furniture 400
To Entrance fees 500 By Library Books 350
To Sale Proceed of old chair 75 By Cost of Entertainments 700
(Book value Rs.100) By balance c/d 2,595

7,550 7,550

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Problem :1 Prepare Receipts & Payments Account
of a Library for the year ending 31st December, 1988
Find the closing Balance
Rs. Rs.

Payments to Creditors 4,300 Bank Balance (1.12.88) 4,000

Addition to Library books 1,400 Entrance fees 1,200
Electric Lights 300 Subscriptions 12,500
Taxes & Insurance 1,900 Proceeds from entertainment 4,500
Repairs 350 Rent received from use of Hall 1,500
Electric Installation 2,000 Interest on Investments 200
Expenses General 700 Sale of old newspapers 450
Sundry Expenses 750 Sale of old furniture 100
Postage 420
Subscriptions to Periodicals 1,400
Cost of investment bought 3,000
Salaries 3,600
Balance at Bank (1.1.88) 4,330
24,450
24,450 CCP302.64 ANS: RS.4,000 7
• Prepare Receipts & Payments Account of
Ramakrishna Mission Charitable Hospital for the
Year ending 31st December, 1999.
Rs.

Cash in hand on 1st Jan,1999 7,130

Subscriptions 47,996
Donations 14,500
Interest on investment @ 7% for
full year 7,000
Proceeds from Charity show 10,450
Medicines Cost 30,590
Doctor’s Honorarium 9,000
Salaries 27,500
Petty expenses 461
Equipment 15,000
Expenses on Charity show 750
Cash in hand on 31st Dec,1999 3,775

Ans. Rs.87,076

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(3) Prepare Receipts & Payments Account of Saraswathi
club for the year ended 31st December, 1989.Cash in hand
on 31.12.89 is Rs 550/- Find the Closing Bank Balance

Receipts:- Rs. Payments:- Rs.

Cash in hand (1.1.89) Bank Overdraft (1.1.89) 3,100

1,500 Subscriptions:- Investment on Securities 3,000
1988 300 Purchase of furniture 1,450
1989 16,200 Salaries
1990 150 6,200
16,650 Stationary & Printing 890
Misc. Expenses
Income from Entertainment 310 1,420
Entrance fees 670 Balance on 31-12-89
Interest on Securities 480 Cash in hand 550
Sale proceeds of old furnniture100

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Ans. Rs.3100/-
(1)Prepare Receipts & Payments Account
of a club for the year 31-12-1987
Find the closing cash balance
Rs.
Rs.
Opening balance 4,200 Sports Material 12,600
(cash)
Donations 14,000 Interest (6% loan) 1,050
Subscriptions:- Match expenses 5,600
1986 2,100
1987 39,900 Newspapers 1,400
1988 2,800 44,800

Interest on Investments 2,800

Entrance fees 9,800
Rent 14,000
Salary:- 1986 2,800
1987 8,400 11,200

Ans. Rs.29750/-
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(1) The following are the particulars of Delhi
club for the year ended 31st December,
1984 Find the Bank Balance
Receipts:- Rs.

Cash (1.1.84) 2,000

Bank (1.1.84) 10,000 12,000

Subscriptions:-
Past 5,000
Present 200
Future 100 5,300

Interest from 5%
Government Security 2,000
Sale of old furniture 1,000
Sale of Newspapers 500
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Problem Contd.,

Rs.
Canteen collection 10,000
Donation received for 10,000
Building fund 6000
Secretary’s remuneration 5,000
Salary to staff 12,000
Canteen Expenses 15,000
Construction of Building 800
Cash (31.12.84)
Ans: Rs.2000/-
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Summary

So for you learnt

Preparing Receipts and Payments Account

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 Quiz
(1) Receipts & Payments Account
must be accompanied by Balance
Sheet
(a) True

(b) False

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(1)Subscriptions to periodicals posted on
Receipts side of Receipts & Payments
Account
(a) True

(b) False

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(1) Sale of Sports Materials posted on Payments
side of Receipts & Payments Account

(a) True

(b) False

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(1) Investments purchased posted on

(a) Debit side

(c) Credit side

(e) Both sides

(g) None of the above

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Frequently Asked Questions

(1) Write the similarities between Receipts and

payments and Cash book

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