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Question
Write any two features of the Receipt and Payment Account.
Solution
Features of the Receipt and Payment Account:
- It's an overview of the cash book.
- It's a genuine account.
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RELATED QUESTIONS
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.
All cash payments are recorded on the ______ side of the receipt and payment accounts.
It alerts the management of a non-trading organisation about decline in cash receipts and increase in cash payments.
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.
Receipt and Payment account is a _____ account.
A receipts and payments account is a nominal account. Justify a reason either for or against.
What is Receipts and Payments Account?
