Question

State True or False:
Receipt and Payment Account records the receipts and payments of revenue nature only.

• A. True
• B. False

Answer 1

The correct option is B False

This statement is false. A receipt and payment account is a summarized cash book. It records all cash transactions whether it is revenue nature or capital nature. The Receipt and Payment account has debit side to record all receipts and credit side to record all payments made by not for profit organisation during a year. It records all the receipts and payments during a year whether related to current year, previous year or next year.