NPO - Receipts and payments A/c

Sugam SM

So receipts and payments account is same as cash book where all the inflows are debited and payments are credited. So the expense which is prepaid is for next year so income and expenditure account will be followed as per accrual concept (for the period). Since total 560 is paid in current year the outflow is 560 in Income and Exp acc it is only 500 as per accrual basis

Thread Starter

Bro the sentence says General expenses include... usually when this comes we take the said amount is included in the Income and expenditure acc amount. so this should be taken as last year prepaid for this year. this is what i thought. thanks for your reply.

CA Suraj Lakhotia Admin

The info given is relevant for receipts and payments accounts. The income and expenditure account is presumed to have been correctly prepared (unless the question says that it was prepared incorrectly)

Sugam SM

See this what makes everyone confuse. So this you should analyse like so for the current year they have given information so it would be likely that it is paid in current year for next year. Since info is based on preparing for current year receipt and payment account,the info provided is to be assumed as paid for next year if it was paid in previous year then the info would be relevant for preparing 31stDec2019 receipts and payments account:)