Commercial Applications
…………… records all cash transactions whether they belong to the current year, previous year or future year.
- Profit & Loss Account
- Income & Expenditure Account
- Receipts & Payments Account
- 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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Related Questions
The closing balance of this account shows surplus / deficit:
- Profit & Loss Account
- Receipts & Payments Account
- Balance Sheet
- Income & Expenditure Account
…………… account is prepared to ascertain surplus or deficit at the end of an accounting year.
- Income and Expenditure
- Balance sheet
- Profit and Loss
- Receipts and Payment
With reference to Receipts & Payments Account which feature(s) is/are correct?
Statement 1: It is a real account.
Statement 2: It reveals the surplus or deficit for the year.
Statement 3: It is a summary of cash receipts.
Statement 4: It contains non-cash items.
- 1 and 3
- 2 and 4
- Only 3
- Only 4
…………… depicts the Capital Fund of the organisation.
- Profit and Loss Account
- Trading Account
- Balance Sheet
- Nominal Account