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Questions
Mention any two features of Receipts and Payments Account.
State two features of Receipts and Payments Account.
Solution
Features of Receipts and Payments Account are as follows:
- The Account is a summary of the Cash Book combining cash and bank transactions.
- The Account begins with the opening balance of cash in hand and at bank. Cash in hand is written on the debit side because it always shows a debit balance. Cash at bank (debit balance) is written on the debit side, but overdraft (credit balance) is written on the credit side.
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.
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.
Give one difference between Receipts and Payments Account and Cash Book.
What is Receipts and Payments Account?
