Advertisements
Advertisements
Question
Give one difference between Receipts and Payments Account and Cash Book.
Solution
| S. No. | Basis of Distinction | Receipts and Payments Account | Cash Book |
| 1. | Purpose | To facilitate preparation of Income and Expenditure Account and Balance sheet. | To provide a permanent record of all cash transaction and to know cash balance at the end. |
| 2. | Preparing entity | It is prepared by non-trading organisations only. | It is prepared by both trading and non-trading organisations. |
APPEARS IN
RELATED QUESTIONS
State five uses of Receipts and Payments account.
In receipt and payment account opening balance of cash in hand, cash at bank and all cash receipts are shown on the ______ side.
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 is a _____ account.
Give two/three uses of Receipts and Payments Account.
A receipts and payments account is a nominal account. Justify a reason either for or against.
Mention any two features of Receipts and Payments Account.
What is Receipts and Payments Account?
