Which of the following is/are correct statement(s)?

Statement 1: Income and Expenditure Account includes both capital and revenue items.

Statement 2: Receipts and Payments Account is a summary of cash transactions over a specific period.

1. Only Statement 1 is correct
2. Only Statement 2 is correct
3. Both Statements 1 and 2 are correct
4. Both Statements 1 and 2 are incorrect

If the total of …………… side is greater than the total of …………… side, it is called 'surplus' or 'excess of income over expenditure'.

1. Debit, credit
2. Credit, debit
3. Credit, credit
4. Debit, debit

…………… shows the financial position of the organization.

1. Trial balance
2. Profit and Loss account
3. Balance sheet
4. Income and Expenditure account

Receipt and Payment account is a …………… account.

1. Real
2. Nominal
3. Personal
4. Trading