Question

State the bases of account on which a receipt and payment account is prepared in case of NPO

Answer 1

Explanation:

Explanation: Receipt and payment account is prepared on ' CASH BASIS of accounting'. REMEMBER: In accounts, only receipt and payment account and cash book are prepared on CASH BASIS of accounting...all the other accounts are prepared on ACCRUEL BASIS of accounting.

Answer 2

Answer:

Receipt and payment account is prepared on the 'CASH BASIS' because adjustments are not recorded in this account.

Explanation:

For more details please see Ultimate Book of Accountancy class 12th CBSE