What are the feature of Receipt and Payment Account?

Explanation

The options of Receipts and Payments Account square measure as follows



(i) outline of money book: it's merely a outline of the cash book. Receipts square measure recorded on the accounting system whereas payments square measure entered on the accounting system.



(ii) Records all the expenditure and gain: It records the entire amounts of all receipts and payments regardless of the amount to that they pertain. It includes all receipts and payments whether or not they square measure of capital nature or of revenue nature.



(iii) Includes money moreover as bank transaction: No distinction is formed in receipts/payments made in money or through bank. With the exception of the gap and shutting balances, the entire quantity of every receipt and payment is shown during this account.



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