Question

Receipt and Payments Account is summary of all capital receipts and payments.

• A. True
• B. False

Answer 1

The correct option is B False

False. Receipts and payment account records the receipts and payments of all nature. Receipts and payments account 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.