To treat a gift of land as a capital receipt in the receipt and payment account of a non-profit organization, certain steps need to be followed. The receipt and payment account is a summary of cash and bank transactions of a non-profit organization during a particular accounting period.

Here's how the gift of land can be treated as a capital receipt:


- Determine whether the land gift is a capital receipt or revenue receipt. In this case, since the land is being given as a gift, it can be considered a capital receipt.


- Create a separate column for capital receipts in the receipt and payment account. This column will include all the capital receipts received by the organization, including the gift of land.
- Record the land gift as a capital receipt in the appropriate column of the receipt and payment account.


- Determine the fair market value of the land gift. This valuation should be based on an independent valuation report or other reliable sources.
- Record the value of the land gift in the receipt and payment account, indicating it as a capital receipt.


- Prepare the financial statements of the non-profit organization, including the income and expenditure account and the balance sheet.
- Disclose the gift of land as a capital receipt in the income and expenditure account under the relevant heading.
- Include the value of the land gift in the balance sheet as a capital asset, under the assets section.

By following these steps, the gift of land can be properly treated as a capital receipt in the receipt and payment account of a non-profit organization. This ensures accurate reporting and disclosure of the organization's financial position.