Question

Receipts and payments account is a _____________.

• A. Personal Account
• B. Nominal Account
• C. Real Account
• D. Representative Account

Answer 1

Answer: (C)

Real Account

“A receipt and payment account is a summarized cash book for a given period”.This is a summary of the cash transactions as in the cash book”. Non-profit organizations prepare receipt and payment account at the end of the year. With the help of this account and some additional information, we prepare income and expenditure account to disclose the true results of non- profit organizations.

So, the receipt and payment account is a real account.