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Question
State whether the following statement is True or False with reasons.
Receipts and Payments Accounts do not have any opening balance.
Options
True
False
Solution
Receipts and Payments Accounts do not have any opening balance. - False.
Explanation:
Receipts and Payments Account is just like a cash book of trading concern, and the opening balance (Cash or Bank or Cash and Bank) must be there to start recording transactions.
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