Receipts and Payments Account of a Club for the Year Ended 31 December 2018

Receipts:
Membership fees: $15,000
Donations: $5,000
Sale of goods: $2,000
Interest on investments: $1,000
Total receipts: $23,000

Payments:
Rent: $4,000
Salaries: $6,000
Printing and stationery: $1,000
Equipment: $3,000
Repairs and maintenance: $2,000
Donations: $4,000
Total payments: $20,000

Surplus: $3,000

Explanation:

A Receipts and Payments Account is a summary of all the cash and bank transactions of a not-for-profit organization for a particular period. The above account shows the receipts and payments of a club for the year ended 31 December 2018.

Receipts:
Membership fees: This is the amount received from members as their annual fees.
Donations: This is the amount received as donations from external sources.
Sale of goods: This is the amount received from the sale of goods by the club.
Interest on investments: This is the amount received as interest on investments made by the club.

Payments:
Rent: This is the amount paid as rent for the premises used by the club.
Salaries: This is the amount paid as salaries to the employees of the club.
Printing and stationery: This is the amount paid for printing and stationery required by the club.
Equipment: This is the amount paid for the purchase of equipment required by the club.
Repairs and maintenance: This is the amount paid for the repair and maintenance of the equipment and premises.
Donations: This is the amount paid as donations to external sources.

Surplus:
The surplus is the excess of receipts over payments. In this case, the club has a surplus of $3,000.

Conclusion:
The Receipts and Payments Account provides an overview of the cash and bank transactions of a not-for-profit organization. It helps in determining the surplus or deficit of the organization. The above account shows that the club has a surplus of $3,000, which can be utilized for future activities of the club.

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