Question

Receipt and payment Account is equivalent to profit and loss account.

• A. True
• B. False

Answer 1

The correct option is B False

False. Receipts and payments accounts is equivalent to cash account. Receipts and payment account records the receipts and payments of all nature. It records all the cash transactions of the business. It is basically a summary of cash transactions all incomes are recorded on the credit side and expenses are shown on the debit side