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Question
It contains both capital and revenue items.
Options
Receipts and Payments Account
Income and Expenditure Account
Balance Sheet
None of these
Solution
Receipts and Payments Account
Explanation:
The Receipts and Payments Account includes both capital and income elements. It shows all cash receipts and payments made during an accounting period, whether they are capital or revenue.
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RELATED QUESTIONS
The objective of preparing a ______ account is to find out the cash position of the organization.
Write any two features of the Receipt and Payment Account.
State five uses of Receipts and Payments account.
It is a summary of cash transactions. It is prepared to ascertain the cash balance at the end of the accounting year.
In receipt and payment account opening balance of cash in hand, cash at bank and all cash receipts are shown on the ______ side.
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.
Receipt and payment account has the following limitation(s).
Its balance at the end shows the cash in hand and at bank (or overdraft) at the end of the year.
Give two/three uses of Receipts and Payments Account.
What is Receipts and Payments Account?
