Commercial Applications
All cash payments are recorded on the …………… side of the receipt and payment accounts.
- Credit
- Debit
- Both (A) and (B)
- None of these
Accounting
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Answer
Credit
Reason — Receipts and Payments Account is a real account that follows the rule "debit what comes in, credit what goes out." Therefore, all cash receipts are recorded on the debit side, while all cash payments (whether of revenue or capital nature, and whether relating to current, previous or future year) are recorded on the credit (payments) side.
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