Receipts and Payments account closing balance

[Eswar Reddy S]

What are the instances which can be the reasons for mismatch of Receipts and Payments Account closing balance balances of Cash and bank ?

If BRS is matched then what reasons can make the mismatch?

[Elisa]

May be mistakes in recording transactions in the Receipts and Payments Account

[Eswar Reddy S]

Receipts and Payments account is system generated based on the entries posted.

Balance Sheet figures correct but R & P account has some issue

[Yasaswi Gomes new]

If it is tally, BRS will tally when we update the bank date. But Receipts like debtors and payments like creditors need not match because Expenses are not equal to incomes. 

[Eswar Reddy S]

But Balance sheet figures and R & P closing balances should match

[Yasaswi Gomes new]

I'm very sorry forgot your accounting structure is R&P for NGO's. I have gone through it and if your bank reconciles, then all payments and receipts are accounted for precisely. But there is no law that balance sheet debits and credits must tally. Since R&P is real accounts the balance must be carried to next period.

[Eswar Reddy S]

But my query is only on Cash and bank closing balance s as per BS and RP and I have not asked all assets and liabilities

[Yasaswi Gomes new]

Got it! I browsed and the payments and receipts and it does look hard to get it. From the screenshots it looks hard to find out the discripency 

 https://help.tallysolutions.com/docs/te9rel66/Reports/Display_Financial_Statements/#gref

[Eswar Reddy S]

Generally it will match in tallyerp. But mine is govt organisation. They use different software

[Yasaswi Gomes new]

I mean I'm not worried about me know unable to understand it, but anyone observe that in the receipts column, there is sundry creditors posted and added to tally R&P. No one can understand it as per the standards. 

[Yasaswi Gomes new]

Or maybe receipts and payments analysis is a ledger in Tally ERP 9. It was not suggested as well. 

[Eswar Reddy S]

All cash and bank receipts, payments made during financial year will reflect in R & P a/c .

So Opening balance + receipts – payments= closing balance, this reflects in R & P a/c

[Yasaswi Gomes new]

Great! When we transform this formula into a ledger, the B/D balance is the resultant.

[Eswar Reddy S]

Only Payments made and amounts received: Corresponding ledgers reflect in R & P a/c .

Journals, Purchase , Sales these entries may not reflect unless cash and carry.

But in my case closing balance is not matching in R & P .

Might be programming error or technical issue.

Even developer of internal software unable to trace it

[Yasaswi Gomes new]

It is a big programming error to presume! Nothing can beat a clean ledger and ends all troubles in interpreting data. 5% know all of it and it is to eat up wages professional accountants. The drill down mechanism must work properly, if not, there is a big issue. I studied about mis in Oracle and it helps the strategic top management. But in this case, if the MIS pyramid doesn't work for you especially, there is something wrong with the world today! 

[Eswar Reddy S]

Is there any other issue?

[CA Surya Sekar]

Check the compound entries

[Eswar Reddy S]

Why compound entries?

[Yasaswi Gomes new]

Who knows it's really a compound entry? Only tally has it and rest all use forms. 

[Eswar Reddy S]

Technical issues will be common problem in third party software programming

[Author]

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