"A receipts and payments account is a nominal account." Justify a reason either for or against.

Against the statement — The Receipts and Payments Account is NOT a nominal account; it is a real account.

Reason — Receipts and Payments Account records the inflow and outflow of cash. It follows the rule applicable to real accounts — "debit what comes in and credit what goes out." Cash receipts are debited (cash comes in) and cash payments are credited (cash goes out). Nominal accounts, on the other hand, deal with incomes, gains, expenses and losses (such as the Income and Expenditure Account).