REMEMBER :- A NPO prepares Receipts and Payments a\c in spite of the fact that they are maintain cash book, which contains all this information:-
1. Transaction under this are not written Date wise
2. It is prepared on the basis of cash book
3. It relates to the current proceeding on the future period.
B.INCOME AND EXPENDITITURE A\C :- It is Nominal in nature. It means all that transaction which cannot be touched are recorded in this a\c. IT IS BASED ON THE PROFIT AND LOSS A\C .In this incomes are shown on the right hand side (income side) (Cr side).and all expenses are shown on the left hand side (expenditure side).(Dr.side).The main object of this a\c is to ascertain excess of income over expenditure i.e. SURPLUS or excess of expenditure over income i.e.
DEFICIT
(ONE SURE)Q.DIFFERENCE B/W INCOME &EXPENDITURE A/C OR RECEIPTS & PAYMENTS A\C
Q.DIFFERENCE B/W RECEIPTS & PAYMENTS A\C OR CASH BOOK
Q.DIFFERENCE B/W INCOME &EXPENDITURE A/C OR PROFIT & LOSS A\C
Name Of The Organisation Income And Expenditure Account For The Period Ended ------
| PARTICULARS | AMOUNT (RS.) | PARTICULARS | AMOUNT (RS.) |
| TO SALARIES +++ | BY SUBSCRIPTION ++ | ||
| ADD: O/S AT THE END+++ | ADD: O/S AT THE END ++ : | ||
| LESS: O/S IN THE BEG.+++ | ++++ |
ADV. IN THE BEG. ++ | |
| TO RENT | +++ | LESS: O/S AT THE BEG -- ADV. IN THE END -- |
++++ |
| TO INSURANCE PREM.++ | +++ | BY ENTRENCE FEES (ONLY REVENUE) | +++ |
| LESS: PREPAID -- | +++ | BY DONATION(GENERAL) | +++ |
| TO AUDIT FEES (ALL EXPENSES) |
OR | BY DEFICIT I.E EXCES OF EXPENDITURE OVER INCOME) | +++ |
| TO SURPLS I.E. EXCESS OF INCOME OVER EXPENDITURE | +++ | ||
| ++++++ |
SOME POINTS TO BE REMEMBER FOR CONVERSION` REC.& PAY`.A\C INTO `INC.&EXP`.A\C (ACCORDING TO 10+2 SYLLABUS)
1. Never take OPENING/CLOSING Cash/Bank balance for prepare `Income.&Expenditure.` a\c by `Receipts.&Payments`.a\c.
2. Only current year INCOMES/EXPENSES are to be taken in `Inc. & Exp.`a/c
3. There are always Two posting for all additional information given in the question
4. In `Income & Expenditure` a\c Depreciation should be calculate and taken
5. All your calculations are shown in the working notes respectively
6. No sale/purchase of assets is recorded in Income&expenditure a\c. only profit loss of such assets is to be recorded.
7. Only General donations are to be recorded in income and expenditure a\c.
8. Interest on Investment is also to be taken on income side but investment purchase is shown inbalance sheet.
SOME TYPICAL HEADS (RELEVENT ITEMS --
