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