What are the features of Receipt and Payment Account?
Answer :
The following are the features of Receipt and Payment Account:
1. Nature: It is a Real Account. It is a like a summary of Cash Book.
2. Nature of Transactions: It records only cash and bank transactions. Non-Cash Transactions (transactions which do not involve cash or bank) like depreciation, loss/ profit on sale of assets, etc. are not recorded in this account.
3. No distinction between Capital and Revenue items: It records all cash receipts & payments as well as all bank receipts & payments of both capital and revenue nature.
4. Opening and closing balance: It begins with the opening balance of cash and bank and it ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.
5. Purpose: It reveals the cash position of an organisation. It helps to find out the total amount received and paid during an accounting period.
Answer :
The following are the features of Receipt and Payment Account:
1. Nature: It is a Real Account. It is a like a summary of Cash Book.
2. Nature of Transactions: It records only cash and bank transactions. Non-Cash Transactions (transactions which do not involve cash or bank) like depreciation, loss/ profit on sale of assets, etc. are not recorded in this account.
3. No distinction between Capital and Revenue items: It records all cash receipts & payments as well as all bank receipts & payments of both capital and revenue nature.
4. Opening and closing balance: It begins with the opening balance of cash and bank and it ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.
5. Purpose: It reveals the cash position of an organisation. It helps to find out the total amount received and paid during an accounting period.
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