Accountancy, asked by sanjoygam00, 1 year ago

Disadvantage of reciept and payment a/c ?

Answers

Answered by sweetijaiswal
0
Limitations Of Receipts And Payments Account:-

1. Receipts and payments account does not differentiate capital and revenue expenses and incomes.
2. Receipts and payments account fails to show expenses and incomes on accrual basis.
3. Receipts and payments account fails to show surplus and deficiency.
4. Receipts and payments account fails to show non-cash transactions such as depreciation of fixed assets, pilferage etc.
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