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Zorluk: OrtaReceipts and Payments Account

The following financial records relate to Beacon Welfare Society for the year ended 31st December 2025:

Transaction / Financial ItemAmount (₦)
Cash balance at 1st January 202545,000
Subscriptions received185,000
Rent paid50,000
Donations received60,000
Printing and stationery paid12,000
Purchase of office furniture80,000
Proceeds from fundraising dinner40,000
Sale of old office equipment25,000
General administrative expenses paid34,000
Electricity bill paid18,000
Depreciation on office furniture8,000
Outstanding rent at 31st December 20255,000
Subscriptions in arrears at 31st December 202515,000

What is the closing cash and bank balance of Beacon Welfare Society to be recorded in the Receipts and Payments Account as at 31st December 2025?

Cevap: 161000

Cevap

The closing cash and bank balance of Beacon Welfare Society as at 31st December 2025 is ₦161,000.
The Receipts and Payments Account is a summary of the cash book for a non-profit organization. It records all cash received (opening cash balance of ₦45,000 + cash receipts of ₦185,000 + ₦60,000 + ₦40,000 + ₦25,000 = ₦355,000) and all cash payments (₦50,000 + ₦12,000 + ₦80,000 + ₦34,000 + ₦18,000 = ₦194,000). Both capital and revenue cash items are included. Non-cash items such as depreciation (₦8,000), outstanding rent (₦5,000), and subscriptions in arrears (₦15,000) are excluded. Subtracting total cash payments from total cash receipts gives the closing cash balance of ₦161,000.

Adım Adım Çözüm

1
Calculate total cash available (opening balance plus all cash receipts)
Total cash available = ₦45,000 + ₦185,000 + ₦60,000 + ₦40,000 + ₦25,000 = ₦355,000
The Receipts and Payments Account records all cash received during the period (capital and revenue) starting with the opening cash balance.
2
Calculate total cash disbursements
Total cash paid = ₦50,000 + ₦12,000 + ₦80,000 + ₦34,000 + ₦18,000 = ₦194,000
All cash payments made during the accounting period, including capital expenditure (purchase of office furniture), must be credited to the account.
3
Exclude non-cash transactions and adjustments
Depreciation (₦8,000), outstanding rent (₦5,000), and subscriptions in arrears (₦15,000) are omitted.
The Receipts and Payments Account functions strictly on a cash basis; non-cash expenses and accruals are excluded.
4
Deduct total payments from total available cash
Closing cash and bank balance = ₦355,000 - ₦194,000 = ₦161,000
The excess of total cash receipts over total cash payments gives the closing cash and bank balance.

Anahtar Kavram

Receipts and Payments Account Scope and Cash Basis
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