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Question
What is Receipts and Payments Account?
Solution
Receipts and Payments Account is a summary of cash transactions over a specified time period usually one year. It is prepared by non-commercial organisations such as clubs, societies and associations.
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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.
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.
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 one difference between Receipts and Payments Account and Cash Book.
Mention any two features of Receipts and Payments Account.
