Question

In receipt and Payment account cash transactions are recorded where as in Income and expenditure account:

• A. Cash transactions are recorded.
• B. Non-cash transactions are recorded.
• C. Both (a) and (b) are correct.
• D. None of the above is correct.

Answer 1

Answer: (C)

Both (a) and (b) are correct.

Receipt and Payment account is a summarized statement of all cash transactions during an accounting year. Income and Expenditure account is the account through which surplus or deficit of a non-profit-seeking concern is ascertained.