Question

Out of the following items, which is not shown in the Receipts and Payments A/c' of a not for profit organisation?
(a) Payment of Outstanding Salary of last year.
(b) Salary paid in advance during the current year.
(c) Outstanding Salary of current year.
(d) Receipt of Life Membership Fee.

Answer 1

Question :

Out of the following items, which is not shown in the Receipts and Payments A/c' of a not for profit organisation?

a ) Payment of Outstanding Salary of last year.

b ) Salary paid in advance during the current year.

c ) Outstanding Salary of current year.

d ) Receipt of Life Membership Fee.

Answer :

C ) Outstanding Salary of Current Year

Payments of Revenue Nature Cannot be recorded in Receipts and Payments account.

It is shown in Income And Expenditure Account.

Receipts And Payments Account :

It includes all cash receipts and cash payments. It is similar to a cash book and hence it serves the purpose of a cash book. All cash transactions whether revenue or capital in nature are accounted. This account begins with Cash balance and ends with the Closing cash Balance.