Question

Consider the following statements,

Statement 1: "Receipt and Payment Account is a summary of all capital receipts and payments".

Statement 2: The Receipt and Payment Account is the summary of cash and bank transactions.

विकल्प

• Only statement 1 is correct.

• Only statement 2 is correct.

• Both the statement is correct.

• None of the above

Answer 1

Both the statement is correct.

Explanation:

The Receipt and Payment Account is a summary of cash and bank transactions that assists in the production of the Income and Expenditure Account as well as the Balance Sheet. It's also a legal requirement, as the Receipts and Payments Account, along with the Income and Expenditure Account and the Balance Sheet, must be filed to the Registrar of Societies.