Receipts and Payment Account Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

hi in this video I am going to explain
receives and payments are count up so
before that if we explain about the
basic concept of nonprofit organization
so generally the business consent can be
classified into two categories one is
trading unzan and the one is non trading
concerned so training consent means the
ultimate objective is to earn profit or
to maximize the profit for their bonuses
so in order to make profit up they'll
sell the goods and services to the
customer by way of in order to maximize
their profit so there is a main
objective of trading concern non-trading
organization means it is just opposite
of trading consent so non-trading means
their ultimate objective is to rent
service to the society to meet some
social desirable goods or to rent
service to its member it is for it is
also the way Skott is non profit making
so the non trading concern also called
as non profit organization in trading
are gone so we need to have three things
while they prepare final account the
final of one consists of three part one
is trading account second one is profit
and loss of God
and third one is balance sheet these are
the three divisions in trading account
so in order to know the trade result so
in trading account we used to record
opening stock the purchase of raw
material and all direct expenses will be
comes under debit said of trading
account in through it said of trading
oven we used to record sales closing
stock all these things will be recorded
in credit say of trading account with
that we can able to know the trade
result that is gross profit or loss loss
after finding gross profit of gross loss
the second step is preparing profit or
loss account with the help of profit and
loss upon what you can able to know the
financial position of the company
whether the company incurred profit or
loss that can be ascertained with the
help of profit and loss account and
finally they will prepare balance sheet
balance sheet means in order to know the
state of affair of the company so these
are the three divisions which comes
under final account of trading concern
that is profit making concerned profit
oriented concern now look at the non
trading organization so non trading
organization means example education
institution sports club hospitals
charitable institution religious
institution all these organization being
non profit seeking do not prepare profit
and loss account so profit and loss of
on trading and balance it is preferred
by the trading concern but this profit
and loss one is not applicable to non
training organization why because their
objective is not making profit even so
they would like to know whether their
current expenses are being met out of
their current income so they also know
whether they have sufficient cash
balances or not for that purpose they
need to prepare final account of
final accounts of nonprofit organization
okay so when you prepare final accounts
for nonprofit organization first step is
a recipient payments are found in profit
organization in training organization
they will have three steps no trading
upon profit and loss of time Balanchine
but here first you need to prepare
receipts and payments upon where you
used to record only inflow of cash and
outflow of cash that's all so there will
be no any other transaction only cash
and bank transactions will be recorded
in the receives and payments are gone
and after preparing the recipient
payments are gone then you can prepare
income and expenditure account so income
and expenditure open is just like the
profit and loss upon but here you won't
be getting any profit or loss since your
profit or loss you have a deficit or
surplus but in profit and loss oven will
have net profit or net loss why because
their intention is to make profit that's
why they'll prepare profit and loss upon
but here you need not repair profit and
loss of instead of that you need to
prepare income and expenditure account
to know the income and to know the
expenses and finally you will have a
surplus or deficit and finally you can
prepare balance sheet which shows the
assets and liabilities of the
organization whether it is education
institution or Club whatever it is they
also have some assets and liabilities
note that you can show in balance sheet
so this is the procedure to prepare
final accounts for nonprofit
organization so in this video I am going
to explain only receives and payment
account in the next video I will explain
income and expenditure account and
balance sheet let us see the resistant
payments upon format so receives and
payment of one for the year ended so you
need to mention you need to write the
date usually there is
and payments account will be prepared at
the end of the financial year here debit
side receives credit side
payments with left hand side is called
reciprocal right hand side is called
payment cider okay so when you prepare
receives and payments are phone if you
have to start with opening balance that
is the last year closing balance will be
the opening balance for current a or no
you have to start with the opening
balance that is to balance brought down
cash balance cash in hand and cash a
banker and you'll have opening balance
no and after that you have to add all
capital receives and revenue recipie
whether it is a capital nature or
revenue nature of whether the income is
belong to current year or last year or
next year if you receive any amount
during this particular year just enter
the commodity receptor side for example
a capital restrictive means or non
recurring nature for example donation
you won't get donation every month or
every egg won't get donation so donation
will be that every once in a while so it
is called as capital nature or capital
receptor and revenue recipients of
recurring nature you will receive
subscription from the members regularly
and you receive a renter so in such case
as far as revenue received revenue
recipients are occurring in nature
capital recipie means capital nature
that is a non recurring nature is called
capital receptor so whether it is
capital nature or revenue nature just
enter all recipie with your incur or
which you've received during this year
that will be shown in receive decide you
have to start with opening balance and
record all the receipts which you have
received during this year and now come
to the payment side payment side just
report the payments that is outflow of
fun outflow of cash or when you pay any
check or when you pay any cash that will
be recorded in this side that is capital
payment as well as revenue payment
should
after payment means a non-recurring
payment for example purchase of
furniture a purchase of any asset is the
capital nature when you purchase a
furniture you need to pay some amount
know that amount is called as capital
payment or capital nature in the same
way revenue payment you need to pay rent
regular every month you need to pay some
amount as a renter that expense is
called as revenue payment ah that is a
recurring non recurring means capital
recurring means revenue so whether it is
capital waymond or revenue payment you
have to enter that amount under payment
side and finally you will have balancing
figure it is called as closing balance
that is closing cash in hand and cash at
banker so this is a procedure to prepare
receives and payments are con so there
will be no adjustment in being receipts
and payments upon only enter all the
received whether it is capital nature or
revenue nature enter the recipient
left-hand side and enter all the
payments that is outflow of cash will be
recorded in payment side so recipient
payments often just like a real account
what is the rule of real account debit
what comes in credit what goes our
scripts and payments upon is just like a
real account just enter all receipts and
end up all payments David what comes in
credit what goes out look at this
problem prepare receives and payments
upon of a club for the year ended 31st
December 2014 from the following
particular is a opening balance opening
cash balance is there that is on the
last year closing balance no so current
an opening balance forty thousand is a
receipt of entrance fees eighteen
thousand subscription received for 2014
so they asked you to prepare visas and
payment upon for the year 2014
but this year they have received a
subscription for 2014 as well as 2015
that is a this amount is belong to next
year but you need to show this also
under this isn't payment up on why
because you have received subscription
during this year okay so you have to
enter this amount also in the received
aside and previously subscription
receive I told you know whether the
recipient here a future year or previous
year but if the transaction take place
during this year okay subscription
relating to current year or next year or
previous year so these three
transactions are took place during this
year not so you have to enter you have
to show all these three subscriptions in
the recipient then life membership fees
also received up entrance fees and
receptor donation receive is a capital
nature none so you have received a
donation so this is also receptor
purchase of investment so purchase of
investment means a payment outflow of
cash rent paid a salary is paid
electricity charges printing &
stationery payment for purchase of
cricket balls it is a payment side
purchase of cricket bats a payment of
insurance premium paid a payment a
repast payment miscellaneous expense
payments and all you have to do is just
enter all the recipient recipe side and
enter the payment under payment side and
you have to start with opening cash
balance and enter all received in recipe
side and all the payments will be shown
under payment side and finally you will
have closing cash balance you have
started with the opening cash balance
know your final answer will be the
balancing figure will be closing cash
balance okay they asked you to prepare
receipts and payments account of a clip
for the year and at 31st December 2014
so left hand side is a recipe side and
right hand side is payment side miss
upon start with opening cash balance I
told you know so you have to start with
opening cash balance so many cash
balances there how much fifty thousand
is there now start with the opening
to balance brought down how much 50,000
all you have to do is only find out they
received and end right here
and just take the payment all the
pavement transition will be reported in
payment side and you will have fine
balance you figure no your final
balancing figure will be closing cash
balance received off entrance fees how
much eighteen thousand no so enter this
amount in recipient to dress it o
entrance
freeze eighteen thousand next
subscription receipt is also a receptor
for 2014 for 2015 and previous year that
is 2013 subscription received so these
things are received during this year no
so just write all the incomes in recipie
side to subscription
for 2014 how much 10,000 for 2015 this
next year income also received during
this year and previous year 2013 also
you have received know how much 2,000
life membership face how much 8,000 is
also received a for club to life
membership fee how much 8,000 entrance
fees 4,000 is also received up to
entrance fees how much $4,000 a shin
receive 60,000 is also received capital
nature to donation
Racine - 60,000 purchase of investment
outflow of cash that is payment you have
invested a moon for purchase or
investment you're paid a moon for
purchase of investment 40,000 for this
transaction under payment side by
purchase or investment how much 40
thousand extra ready to pay is also
payment up by but revenue payment
revenue Nietzsche by arrange how much
ten thousand next item salaries paid
25,000 payment side by salaries 25,000
next electricity charges four thousand
payment side by electricity charges four
thousand mixed printing & stationery
this also payment by
printing & stationery 800 payment for
purchase of cricket balls is also
payment by cricket balls thousand two
hundred next item purchase of cricket
bats is also famous by cricket bats how
much three thousand next item insurance
premium paid by under the pages also
payment by insurance how much 500 next
item repairs
it is also expense payments by
very pass 300
the last one is miscellaneous expense so
mix miscellaneous expense means some
petty expenses all the petits is
combined Lee called as miscellaneous
expenses salsa payments i buy
miscellaneous expenses 400 so you
started with opening balance 50000 you
have entered all the receives in
receiver side and you enter all the
payments under payment side now we'll
have balance and figure this side so the
balance in figure will be the closing
cash balance just find the total 1 lakh
64 thousand enter the same amount here
also 1 lakh 64,000 balance in figure is
78 thousand eight hundred by balance
carry down that is balancing think up so
this balancing figure is a closing cash
balance and you started with opening
balance fifty thousand you have received
an omen from various sources and the
daughter recipes one lakh sixty-four
thousand out of one lakh sixty thousand
four thousand you have made payment for
various things and the excess of
received overpayment is called closing
cash balance the current cash balance is
78 thousand eight channels will be the
closing cash balance for the current
year and the next year this will be the
opening balance while you prepare
receive some payment for the next year
this will be comes in recipie I can you
prepare receives on payments open for
the next year this will be comes under
recipt aside thank you