RECEIPTS AND PAYMENTS A/C AND INCOME AND EXPENDITURE A/C

IN NON PROFIT ORGANIATION ACCOUNTS THE RECEIPT AND PAYMENT ACCOUNTS REPLACE THE CASH BOOK.

THIS IS USED TO RECORD WHEN MONEY IS RECEIVED (RECEIPT) AND WHEN MONEY IS PAID OUT (PAYMENTS )

DR (RECEIPTS) CR (PAYMENTS)

An account showing whether the capital has increased. A sole trader or Partnership will have capital accounts. A non profit organisation will instead have an Accumulated fund.

Accumulated fund= Assets -Liabilities

Non profit making organisation creates a profit and loss account when something is done to make a profit.

For example A club may raise funds by organising a dance that people pay to attend. These event will help to pay for some of the club expenses.

Any profit (Surplus) or loss (deficit) transfer to income statement.

All income listed together, examples are goss profit on bar (Bar Trading) Subscription , and Donation ( ALL REVENUE)

All expense are listed together and then the total will be deducted from the total income.

Surplus if Income exceed Expenditure

Deficit if Expenditure exceed Income

STEP 1 FIND ACCUMUATED FUND AT START

STEP 2. FIND CASH BALANCE (CREATE AND BALANCE RECEIPT AND PAYMENTS ACCOUNTS

STEP 3. CREATE BAR TRADING (OUR EVENT TRADING) FIND GROSS PROFIT

STEP 4 CREATE SUBSCRIPTION ACCOUNT

STEP 5 CREATE INCOME AND EXPENDITURE

STEP 6 STATEMENT OF FINANCIAL POSITION AT END