Receipts and Payments

RECEIPTSRevenue vs. CapitalRevenue Receipts

Income collected by the club to carry out the daily activities.

Capital ReceiptsIncome collected for

the specific purpose improving a fixed asset or the sale of a fixed asset

Egs. of Revenue vs. Capital ReceiptsRevenue Receipts

SubscriptionsEntrance feesRental receivedProfit from sales of

refreshmentsDonationsWalkathonCommission

received

Capital ReceiptsBuilding of

extension to the club house

Construction of swimming pool

Sale of fixed assets

EXPENDITURERevenue vs. Capital

Revenue ExpenditureMoney spent in

running the daily activities of the club.

Capital ExpenditureMoney spent by a

club to buy or add value to a fixed asset.

Egs. of Revenue vs. Capital Expenditure

Revenue ExpenditurePurchases of goods

for resaleRental of club houseWagesInsurance, rates,

sundry expensesMaintenance and

repairsDepreciation of

fixed assetsPetrol costs for van

Capital ExpenditurePurchase of fixed

assetsPainting outside a

new buildingPutting extra

headlights on motor van

Construction or extension of club house

Nothing different!!Profit-making firm Non-profit

organisationTrading & Profit & loss account

Income and expenditure account

Net profit Surplus of income over expenditure

Net loss Excess of expenditure over income

Capital account Accumulated fund

Cash Book Receipts and Payments account

SUBSCRIPTIONSRevenue Receipts

Subscriptions in Arrears (Dr. Balance)Subscriptions in Advance (Cr. Balance)