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Question
Receipt and Payment account is a _____ account.
Options
Real
Nominal
Personal
Trading
Solution
Receipt and Payment account is a Real account.
Explanation:
A Receipt and Payment Account is a real account. Real accounts deal with assets and liabilities, and the Receipt and Payment Account is essentially a summary of all cash and bank transactions
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RELATED QUESTIONS
The objective of preparing a ______ account is to find out the cash position of the organization.
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.
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.
It contains both capital and revenue items.
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.
