The correct answer is: A. Sale of old newspaper
A receipts and payments account is a financial statement that records all the income and expenses of a club or other organization over a specific period of time. It is used to track the club’s financial performance and to ensure that it is operating within its budget.
The following items should be entered in a receipts and payments account:
- Income from membership fees, donations, and other sources
- Expenses for rent, utilities, staff salaries, and other operating costs
- Capital expenditures, such as the purchase of new equipment or furniture
The sale of old newspapers is not an income item, as it is not a regular source of revenue for the club. It is also not an expense, as it does not represent a cost to the club. Therefore, it should not be entered in the receipts and payments account.
The other options are all items that should be entered in the receipts and payments account. Option B, loss on the sale of used asset, is an expense that should be recorded in the account. Option C, payment of honorarium, is an income item that should be recorded in the account. Option D, realisation from the sale of furniture, is a capital expenditure that should be recorded in the account.