Question

State the feature of the Receipt and Payment Account

Answer 1

The features of the receipt and payment account are as follows:

1. It is also known as the cash book summary for a non-profit organisation.
2. It shows transactions that are of capital and revenue nature.
3. The default balance is a debit balance but in some cases of having overdrafts, it shows a credit balance.
4. It only includes those transactions that are cash or bank items.
5. It does not follow the double-entry system of bookkeeping.
6. It is prepared on the last day of the accounting period (a year).

Also read:

• Classification of Receipts
• Receipt and Payment Account

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