Receipt and Payment account is prepared on the ______ day of accounting year.

middle

No worries! We‘ve got your back. Try BYJU‘S free classes today!

satarting

No worries! We‘ve got your back. Try BYJU‘S free classes today!

last

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

none of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D last
Receipt and Payment account is prepared on the last day of accounting year. This account records transaction related to cash in the accounting year.

Suggest Corrections

Similar questions

On what basis the receipts and payments account is prepared?

From the following Receipt and Payment Account prepare final accounts of a Unity Club for the year ended March 31, 2007.

Receipt and Payment Accounts for the year ending March 31, 2007
Receipts		Amount Rs	Payments	Amount Rs
Balance b/d		15,000	Furniture	18,000
Sale of Old furniture (costing Rs 6,000)		4,000	Library books	10,000
Subscriptions:			Salaries	72,000
2005−06	18,000		General expenses	18,000
2006−07	60,000		Electric charges	12,000
2007−08	2,000	90,000	Newspapers	33,800
Sale of old newspapers		10,800	Postage	3,000
Profit from entertainment		44,000	Stationery	40,000
Rent		84,000	Audit fee	8,000
			Balance c/d	33,000
		2,47,800		2,47,800

Additional Information:

1.	The Club had 500 members each paying an annual subscription of Rs 150.
2.	On 31.3.2007 salaries outstanding amounted to Rs 1,200 and salaries paid included Rs 6,000 for the year 2005−06.
3.	Provide 5% depreciation on Land and Building.

What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

Join BYJU'S Learning Program