a) Credit side of receipt and payment will be payment side. In this side, you have to leave capital nature expenses and closing balance. All other expenses payments will go to the debit side of income and expenditure account.
Remember:
i) Please see the adjustment notes, if there are any advance expense, you have to deduct it from particular paid expense because, we did not show the expense which we have paid in advance but still, we did not take its service.
ii) If there is any expense which is payable but still did not paid, will be added in the particular paid expense.
b) Debit side of receipt and payment will be receipt side. In this side, you have to leave capital nature incomes and opening balance. All other income receipt will go to the credit side of income and expenditure account.
Remember:
i) Please see the adjustment notes, if there are any advance incomes, you have to deduct it from particular receipt incomes because, we did not show the income in I / E Account which we have received in advance but still, we did not give its service.
ii) If there is any income which is which is receivable but still did not receive, will be added in the particular received income.
3rd Step: Not Included Items in I / E Account
a) Any donation which we receive for any particular fund, we will not add in income and expenditure account. As per fund based accounting, we will treat it in that particular fund.
b) Any legacy amount which will get from the will of any person will be capital receipt and will not shown in income and expenditure account.
c) If we receive life membership fees, we will not add whole fees as income in income and expenditure account. For example, we have rule of 10 years as life time member and if a person donated 5,00,000 as life time