Sometimes Income and Expenditure A/c and Balance Sheet is given and required to prepare receipts and payments account and in such a situation. 

The following procedure may be followed:

• All expenditure whether capital or revenue irrespective of the periods are shown on the payments side.
• All receipts whether capital or revenue irrespective of the periods are shown on receipt side.
• Pick up opening and closing balance Cash and Bank A/c to the Receipt & Payment Account.
• Eliminate all adjustments made while preparing income and expenditure account.
• Purchase of assets may be calculated and shown on the payments side. For compare the values of assets at the beginning and closing of the period.
• Adjustments of prepaid exp., Advance Receipts and Outstanding Exp. should be keeping in mind regarding particular item.

Income Side:
Amount shown in income and expenditure account …………
Less: Closing outstanding subscription in current year ……….
Less: Advance subscription received in last year ……….
Add: Outstanding subscription of last year received in current year ……..
Add: Advance subscription received in current year ………….
Amount of subscription shown in receipts and payments account in current year ………..

Expenditure Items:
Amount of salary shown in income and expenditure account ……………
Less : Closing outstanding of current year …………..
Less: Advance salary paid last year (related to current year) ………..
Add: Outstanding salary of last year (which is paid this year) ………..
Add: Advance salary paid in current year related to next year ………….
Amount of salary shown in receipts and payments account ……….

Amount of Stationery Consumed:
Amount of stationery shown in income and expenditure account …………..
Less: Opening stock of stationery ………….
Add: Closing stock of stationery ………….
Less: Advance payment last year for stationery ………….
Add: Advance stationery paid in current year related to next year ………..
Less: Current year closing creditors of stationery …………
Add: Current year opening creditors of stationery ………..
Amount of stationery shown in receipts and payments account ………