Under the Companies Act 2013, there are specific formats prescribed for financial statements, including the Receipts and Payments Account for certain types of entities, such as non-profit organizations, clubs, or societies. Here’s how you would typically prepare the Receipts and Payments Account according to the prescribed format:
- Opening Balance: Start with the opening balance of cash on hand and at bank at the beginning of the accounting period.
- Receipts: Record all cash receipts received during the accounting period. This includes:
- Membership fees
- Donations or contributions
- Grants
- Sale of goods or services (if applicable)
- Interest income
- Any other sources of income received in cash
Each type of receipt should be listed separately, and the total cash receipts for each category should be calculated.
- Payments: Record all cash payments made during the accounting period. This includes:
- Salaries and wages
- Rent and utilities
- Office expenses
- Administrative expenses
- Purchase of goods or services (if applicable)
- Any other expenses paid in cash
Like receipts, each type of payment should be listed separately, and the total cash payments for each category should be calculated.
- Closing Balance: Calculate the closing balance of cash on hand and at bank at the end of the accounting period. This is calculated by adding the opening balance to the total receipts and subtracting the total payments.
- Additional Information: Provide any additional information or explanations that may be necessary for stakeholders to understand the transactions recorded in the Receipts and Payments Account.
It’s important to note that the format and requirements for the Receipts and Payments Account may vary depending on the specific regulations applicable to the entity. Therefore, it’s advisable to consult with a professional accountant or refer to the relevant provisions of the Companies Act 2013 and any related rules or guidelines issued by regulatory authorities for accurate preparation.