Receipts and Payments Account and Additional Information of Modern Health Club

Introduction
Modern Health Club is a non-profit organization that provides health and fitness services to its members. The club operates on a membership basis and has a substantial number of members.

Receipts and Payments Account
The receipts and payments account of Modern Health Club for the year ended on 31st December 2020 is as follows:

Receipts:
- Membership fees received: $250,000
- Donations received: $20,000
- Sale of Club merchandise: $2,000
- Interest on investments: $1,500
Total Receipts: $273,500

Payments:
- Rent: $60,000
- Salaries and wages: $110,000
- Purchase of new gym equipment: $40,000
- Repairs and maintenance: $15,000
- Electricity and water charges: $10,000
- Insurance premium: $5,000
- Purchase of refreshments: $2,500
- Miscellaneous expenses: $2,000
Total Payments: $244,500

Additional Information
Apart from the receipts and payments account, the following additional information is also available:

1. The club has invested $100,000 in government bonds that yield an 8% annual interest rate.
2. The club has purchased new gym equipment worth $40,000 on 1st July 2020.
3. The club has outstanding rent due of $10,000 as of 31st December 2020.
4. The club has prepaid insurance premium of $2,000 as of 31st December 2020.

Analysis
Based on the receipts and payments account and additional information, the following analysis can be made:

1. Income: The club has generated a total income of $273,500, which mainly consists of membership fees and donations. The club has also earned interest on its investments in government bonds.

2. Expenses: The club has incurred a total expense of $244,500, which primarily consists of rent, salaries and wages, and purchase of new gym equipment. The club has also incurred expenses related to repairs and maintenance, electricity and water charges, insurance premiums, and purchase of refreshments.

3. Net Income: The net income of the club is $29,000 ($273,500 - $244,500).

4. Capital Expenditure: The club has invested $40,000 in new gym equipment, which is a capital expenditure.

5. Rent: The club has an outstanding rent due of $10,000 as of 31st December 2020.

6. Prepaid Insurance: The club has prepaid insurance premium of $2,000 as of 31st December 2020.

Conclusion
The receipts and payments account and additional information of Modern Health Club provide a comprehensive insight into the financial performance of the club. The analysis suggests that the club has generated a net income of $29,000, which is a positive sign. However, the outstanding rent due and prepaid insurance premium should be taken into account while preparing the financial statements of the club.