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Commercial Applications

…………… records all cash transactions whether they belong to the current year, previous year or future year.

  1. Profit & Loss Account
  2. Income & Expenditure Account
  3. Receipts & Payments Account
  4. Personal Account

Accounting

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Answer

Receipts & Payments Account

Reason — Receipts and Payments Account records all cash receipts and cash payments irrespective of whether they belong to the current year, previous year or future year. For example, subscriptions received during the year include arrears of last year, current year and advance for next year — all are recorded together. In contrast, Income and Expenditure Account records only items pertaining to the current accounting year.

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