Question

The receipt and payment account generally shows _________________.

• A. A surplus
• B. A credit balance
• C. A debit balance
• D. A deficit

Answer 1

The correct option is C A debit balance

A receipt and payment account generally shows a debit balance. The debit balance of receipts and payments account is like a cash account that reflects the closing balance of cash at the end of the year after recording all the payments and receipts. To ascertain any missing item of receipt of payment, generally, a cash book summary is prepared.