Receipt and Payment Account:

Learning Objectives:

Define and explain receipt and payment account.
Why a receipt and payment account is prepared?
Prepare a receipt and payment account.

Definition and Explanation:

Receipt and payment account is a mere summary of cash book for a year. It begins with the cash in hand at the commencement and ends with that at the close of the year. Similarly to cash account, in receipts and payments account receipts are shown on the debit side while payments are shown on the credit side, without any distinction between capital and revenue. Moreover, it does not include an unpaid expenditure not any unrealized income relating to the period under review and so fails to reveal the financial position on the concern.

Format of Receipt and Payment Account:

Receipts	$	Payments	$

Example:

Receipt and Payment Account

Receipts	$	Payments	$
To Balance b/d To Annual subscription To Life membership fees To Entrance fees To interest on securities To sundry receipts	1,240 1,630 250 240 180 50	By general expenses By salaries and wages By furniture By rent, rates & taxes By printing & stationary By Repairs By Balance c/d	550 550 800 500 125 150 915
	3,590		3,590

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Managerial Accounting


■	Introduction to Managerial Accounting
■	Business and Quality Improvement Programs
■	Cost Terms, Concepts and Classification
■	Job Order Costing system
■	Process Costing System
■	Process Costing System - Addition of Materials & Beginning Inventory
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■	By Products and Joint Products Costing
■	Cost-Volume-Profit-Relationship
■	Variable Costing System
■	Activity Based Costing System
■	Budgeting and Planning
■	Standard Costing and Variance Analysis
■	Gross Profit Analysis
■	Linear Programming Technique
■	Segment Reporting and Transfer Pricing
■	Capital Budgeting Decisions
■	Service Department Costing
■	Cash Flow statement
■	Financial statement Analysis
■	Pricing Products and Services
■	Managerial Accounting Terms and Definitions
■	Managerial / Cost Accounting Formulas

Financial Accounting


■	Bookkeeping and Bookkeeping Terms
■	Accounting Principles and Accounting Equation
■	Journal
■	Ledger
■	Accounting For Bills of Exchange
■	Subdivision of Journal
■	Final Accounts
■	Capital and Revenue Items
■	Single Entry System/Accounting From Incomplete Records
■	Accounting For Non-Trading Concerns
■	Accounting for Consignment / Consignment Accounts
■	Accounting for Joint Ventures
■	Accounting for Depreciation

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