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is preparation of receipt and payment a/c is necessary

priyatambika ( ca final student) (323 Points)

28 August 2018

one person runs a dental clinic..so is it necessary to prepare receipt and payment a/c or we can directly prepare profit and loss a/c..

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9 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14244 Points)
Replied 28 August 2018

It is better to prepare receipt & payment and then Income & expenditure not profit and loss account . If it is Hospital its non profit concern .

priyatambika ( ca final student) (323 Points)
Replied 28 August 2018

it is a profit concern..can't say profit...say medical services..

All over the world (16 Points)
Replied 29 August 2018

prepaire income &expenditure account for know a net profit

priyatambika ( ca final student) (323 Points)
Replied 29 August 2018

but it is not a non profit entity...

All over the world (16 Points)
Replied 29 August 2018

ok then prepaire reciepts and payment

Ashwin Kumar (CA ipcc) (447 Points)
Replied 30 August 2018

dental clinic fall under the category of non profit organisations that are registered under section 8 of companies act..it is better you prepare reciepts and payments account and income & expenditure accpunt also. furthur provide balance sheet under schedule iii format.

(Guest)

No, receipts and payments account is mandatory only if required by law. I assume that it is a sole proprietorship, hence it's not mandatory. However, you may prepare if you wish. Profit and loss account is already mandatory for balance sheet. That's just normal accounting process.