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Commercial Applications

…………… is a summary of cash transactions.

  1. Income and Expenditure Account
  2. Balance Sheet
  3. Profit and Loss Account
  4. Receipts and Payment Account

Accounting

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Answer

Receipts and Payment Account

Reason — Receipts and Payments Account is a summary of cash transactions. It is prepared at the end of the accounting year from the Cash Receipts Journal and Cash Payments Journal. All cash receipts appear on the debit side and all cash payments appear on the credit side, irrespective of whether they relate to the current, previous or future year.

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