Receipt and Payment account shows no ________ items such as depreciation, outstanding expenses, accrued income etc.

Cash

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Capital

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Non-cash

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Revenue

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Solution

The correct option is C Non-cash
Non-cash items are those that do not involve the use of cash. Items such as depreciation, outstanding expenses , accrued income etc. are not shown in receipt and payment account because it is a real account. only cash transactions are recorded in Receipt and payment account.

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Similar questions

State the meaning of

(a) Outstanding expenses

(b) Prepaid expenses

(d) Accrued income

State the meaning of:

(a) Outstanding expenses

(b) Prepaid expenses

(d) Accrued income

Outstanding expenses are _______ while preparing receipts and payments account

Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017

Receipt and Payment Account for the year ending December 31, 2017
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d		Charity	11,500
Cash in hand	11,500	Rent and taxes	3,200
Cash at bank	12,600	Salary	6,000
Donation	9,000	Printing	600
Subscription	42,800	Postage	300
Legacies	18,000	Advertisements	4,500
Interest on investment	4,500	Insurances	2,000
Sale of old newspapers	200	Furniture	21,600
		Investment	23,000
		Balance c/d:
		Cash in hand	9,900
		Cash at bank	16,000
	98,600		98,600

Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:

(a)	It was decided to treat one-third of the amount received on account of donation as income.
(b)	Insurance premium was paid in advance for three months.
(c)	Interest on investment Rs1,100 accrued was not received.
(d)	Rent Rs600: salary Rs900 and advertisement expenses Rs1,000 outstanding as on December 31, 2017.

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