Accountancy, asked by raviranjannurpur123, 4 months ago

2. Basic concepts of Receipts & Payments Account. Give an
imaginary Receipts and Payments Account​

Answers

Answered by khushisaini3054
1

Answer:

Definition

A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period. All cash received and paid during the period whether capital or revenue is included in this account. The receipts are entered on the debit side, that in on the same side as that on which théy appear in the cash book.

Explanation

All the receipts are grouped under main headings such as entrance fees, annual subscription, life membership subscription, donations, interest and sundry receipts. All the payments are entered on the credit side, under main headings such as Salaries and Wages, Printing and Stationary, Rent, Rates and Taxes, Office expenses etc.

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