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प्रश्न
A receipts and payments account is a nominal account. Justify a reason either for or against.
उत्तर
Against:
- A Receipts and Payments Account is not a nominal account; it is a real account.
- This account records all cash transactions, including receipts and payments, regardless of the accounting period to which they correspond.
- It records the real movement of cash into and out of the organization.
- Nominal accounts, on the other hand, account for revenue, expenses, gains, and losses and are closed at the end of each accounting period. Because the Receipts and Payments Account handles cash transactions (real assets), it is regarded as a real account.
APPEARS IN
संबंधित प्रश्न
Write any two features of the Receipt and Payment Account.
State five uses of Receipts and Payments account.
All cash payments are recorded on the ______ side of the receipt and payment accounts.
The primary objective of preparing this Account is to find out the cash position, opening and closing balances of cash in hand and at bank.
It alerts the management of a non-trading organisation about decline in cash receipts and increase in cash payments.
Receipt and payment account has the following limitation(s).
Receipt and Payment account is a _____ account.
Give two/three uses of Receipts and Payments Account.
Give one difference between Receipts and Payments Account and Cash Book.
Mention any two features of Receipts and Payments Account.
