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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)