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Transcript of Receipts and Payments Accounts and Income and ...subject.cwgc.edu.hk/pa/sources/Lecture...
Principles of AccountsPrinciples of Accounts
Chapter 34Chapter 34
Receipts and Payments Accounts Receipts and Payments Accounts and and
Income and Expenditure Income and Expenditure Accounts Accounts
Introduction
Non-profit making organizations
Non-profit making
Provide services to members
Except sale of food and drinks Profits
No distribution of profits tomembers
Sources of income
Can you name some of the examples ?
Then, what are the examples of expenditures in a non-profit making organization ?
Incomes :1. Donations2. Subsidy3. Income from fund
raising activities4. Subscriptions5. Membership fees6. Entrance fees7. Bar profit8. …………………
Expenditures :1. Stationery2. Sundry expenses3. Printing
4. Staff wages5. Depreciation of FA6. Rent and rates7. Telephone bills8. ………………….
Accounting Terms
Trading Firms :
1. Capital2. Cash Book
3. Profit and Loss Account
4. Net Profit
5. Net Loss
Non-profit Making Organizations :
1. Accumulated Fund2. Receipts and Payments
Account3. Income and Expenditure
Account4. Surplus of income over
expenditure / Surplus5. Excess of expenditure
over income / Deficit
Receipts and Payments Accountsa summary of bank and cash transactionsthe balance at the beginning and the end of the period represents the amount of cash in hand and at bank or bank overdraft not a ledger account
Receipts and Payments AccountReceiptsOpening bank balanceOpening cash balanceList of receipt items
PaymentsList of payment itemsClosing bank balanceClosing cash balance
Deficiency of Receipts and Payments Account
1. It fails to reveal the performance of non- trading organizations during an accounting period.
2. In order to reflect its performance during a period, a different form of financial statements is required. ???????
Excellent Golf Club Income and Expenditure Account
for the year ended 31 October 2004Income : $ $
Bar profit 8 000Subscriptions received 10 000Life membership fees received 20 000 38 000
Less : ExpenditureRent and rates 10 000Stationery 900Provision for depreciation--- fixtures and fittings 1 100 12 000
Surplus of income over expenditure 36 000
Excellent Golf Club Balance sheet as at 31 October 2004
Fixed Assets $ $ $Fixtures and fittings 11 000Less : Provision for depreciation 1 100 9 900
Current AssetsBar stock 1 500Prepaid expenses 200Cash at bank 40 000 41 700
Less : Current LiabilitiesBar creditors 1 000
Net Current Assets 40 70050 600
( to be continued )
( to be continued )
Accumulated Fund $Balance as at 1 November 2003 10 000Add : Excess of income over expenditure 36 000
46 000Life membership fees 4 600
50 600
Do you understand the basic accounting practice for the non-profit making organizations ?
Summary of accounting procedures? ?
? Summary of accounting procedures
? ?
?Summary of accounting
procedures
? ?
Steps :1. Statement of affairs2. Bar Trading Account3. Income and
Expenditure Account4. Balance Sheet
Notes Notes :: Example 1 !!!!!!!Example 1 !!!!!!!
Wish you great success !!!!!!!
THE ENDTHE END
THANK YOU!THANK YOU!