State with reasons whether the following statements are TRUE or FALSE:
Receipt and Payment Account is a summary of all capital receipts and payments

Explanation

This statement is fake. A receipt and payment account could be a summarized money book. It records all money transactions whether or not it's revenue nature or capital nature.


The Receipt and Payment account has method of accounting to record all receipts and accounting system to record all payments created by not for profit organization throughout a year.


It records all the receipts and payments throughout a year whether or not associated with current year, previous year or next year.