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Zorluk: Çok zorReceipts and Payments Account

The financial records of Unity Social Club for the year ended 31st December 2025 reveal the following balances and transactions:

Transaction / ItemAmount (₦)
Bank balance (1st January 2025)45,000
Cash in hand (1st January 2025)12,000
Subscriptions received in cash (including ₦15,000 for 2024 and ₦20,000 for 2026)240,000
Subscriptions accrued and unpaid (31st December 2025)18,000
Donation received for building fund150,000
Sale of old office equipment (Book value ₦30,000)35,000
Life membership fees received in cash50,000
Rent paid in cash (including ₦8,000 prepaid for 2026)96,000
Rent accrued and unpaid (31st December 2025)10,000
Salaries and wages paid in cash110,000
Purchase of new furniture paid in cash80,000
Depreciation on furniture for the year16,000
Honorarium paid to secretary25,000
Outstanding invoice for printing and stationery5,000

What is the total closing cash and bank balance to be shown in the Receipts and Payments Account as of 31st December 2025?

  1. ₦221,000Cevap
  2. B
    ₦135,000
  3. C
    ₦202,000
  4. D
    ₦301,000

Cevap

The closing cash and bank balance in the Receipts and Payments Account is ₦221,000.
The Receipts and Payments Account functions strictly on a cash basis. The calculation begins with the total opening cash and bank balances (₦57,000), adds all actual cash received (₦240,000 subscriptions + ₦150,000 building donation + ₦35,000 sale of equipment proceeds + ₦50,000 life membership fees = ₦475,000), and subtracts all actual cash paid out (₦96,000 rent + ₦110,000 salaries + ₦80,000 furniture purchase + ₦25,000 honorarium = ₦311,000). Accrued items, prepayments adjustments, and non-cash charges (depreciation, outstanding invoice) are ignored. This yields a closing balance of ₦57,000 + ₦475,000 - ₦311,000 = ₦221,000.

Adım Adım Çözüm

1
Calculate the total opening cash and bank balance
₦45,000 + ₦12,000 = ₦57,000
Both opening cash in hand and opening bank balance form the opening balance of the Receipts and Payments Account.
2
Sum all cash receipts during the year (including capital receipts and receipts for past/future periods)
₦240,000 (Subscriptions) + ₦150,000 (Building Fund Donation) + ₦35,000 (Equipment Sale Proceeds) + ₦50,000 (Life Membership Fees) = ₦475,000
Receipts and Payments Account records all actual cash inflows regardless of whether they are capital or revenue in nature.
3
Sum all cash payments during the year (including capital expenditure and payments for future periods)
₦96,000 (Rent paid) + ₦110,000 (Salaries) + ₦80,000 (Furniture purchased) + ₦25,000 (Honorarium paid) = ₦311,000
Receipts and Payments Account records all actual cash outflows regardless of whether they are capital or revenue in nature.
4
Exclude non-cash items and accrued/outstanding amounts
Excluded items: Accrued Subscriptions (₦18,000), Accrued Rent (₦10,000), Depreciation (₦16,000), Outstanding Printing Invoice (₦5,000)
Non-cash items and unpaid accruals do not involve actual movement of cash and are therefore excluded from the Receipts and Payments Account.
5
Compute the closing cash and bank balance
Closing Balance = Opening Balance (₦57,000) + Total Cash Receipts (��475,000) - Total Cash Payments (₦311,000) = ₦221,000
The Receipts and Payments Account acts as a summarized Cash Book where Receipts + Opening Balance - Payments = Closing Cash/Bank Balance.

Anahtar Kavram

The Receipts and Payments Account is a real account summarized from cash transactions. It records all cash received and paid during an accounting period regardless of whether the transactions are capital or revenue, or relate to past, present, or future periods. Non-cash expenses and accrued items are strictly omitted.
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