Question

Receipt and Payment account is _______ the double entry system whereas Income and Expenditure account is ______ the double entry system.

• A. Outside, Within
• B. Within, Outside
• C. Inside, Within
• D. Inside, Not inside

Answer 1

Answer: (A)

Outside, Within

Receipt and Payment is a summarized statement of all cash transaction during an accounting year. Income and Expenditure account is the account through which surplus or deficit of a non-profit-seeking concern is ascertained. To ascertain the surplus or deficit double entry system is to be followed in the same manner as it is done for ascertaining of the profit or loss for business operations.