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X.Y.Z Golf Club
Receipts and payments Account
For the year ended on 31 Dec, 2012

RECEIPTS AMOUNT PAYMENTS AMOUNT
Balance b/d (or Balance at 1.1.2012)
Donations received
Loan from bank
Profit on investment
Subscription received
Rent received
Legacies
Entrance fee

$15000
$2000
$1000
$10,000
$1000
$4000
$2000
$2000

Salaries paid
Rent and rates expenses
Stationery and postage expenses
Legal expenses
Groundsman wages
Interest on bank loan
Utility expenses paid
Secretary Honorarium
Sports material purchased

Balance c/d (Balance at 31.12.2012)

$3000
$1000
$1000
$1000
$2000
$1000
$1000
$3000
$2000

$17000
TOTAL $37000 TOTAL $37000



Receipt and payments account

Receipts and payments account is maintained by small charities and clubs in order to keep the record of cash paid and received during an accounting period. Cash receipts are recorded on the debit side and cash paid recorded on credit side of a receipts and payments account.

As long as the cash is received or paid during an accounting period it appears in cash receipts and payments account despite the fact that receipts and payments of cash are related to previous, current or subsequent accounting period.

Receipts and payment account is different from a cash book mainly because it records cash payments and cash receipts at the end of an accounting period with less details, whereas a cashbook record cash related transactions as soon as they occur with more details

Balance of receipt and payment account is not used to produce a balance sheet


Things you should know about a receipts and payment account

  1. Receipts and payments account is used to record all cash related transactions of a non-profit organization
  2. Receipt and payments account is prepared at the end of an accounting period
  3. Receipts and payments account is a summary of cashbook
  4. Receipts and payments account is NOT a book of original entries (such as cash book)
  5. Receipt and payments account is generally prepared by non-profit organizations NOT by all types of organizations
  6. It is not compulsory for a non-profit organization to produce a receipts and payments account


Difference between a receipts and payments account and a cashbook

A receipts and payments account looks like a cash book but there is a slight difference between a cash book and receipts & payments account. A receipts and payments account shows cash receipts and payments during an accounting period. A receipts and payments account is the summary of cash book, that means it doesn't show the bank account and cash related transactions separately nor does it contain discount column. Moreover, receipts and payments account is not used to prepared a balance sheet


A Few major points of difference

Accounting timing
A receipts and payments account is prepared at the end of an accounting period. Whereas transactions are entered in a cash book frequently during the accounting period

Nature of entities
A receipts and payments account is prepared by a non-profit organization only. However, cash book is prepared by all types of organizations

Nature of Books
Cash book is the book of original entries while receipts and payment account is not a book of original entries and it’s not compulsory for an entity to prepare a receipts and payment account