Question

What are the objective of receipts and payment account?

Answer 1

✔✅Objective Receipts and payments account is prepared to show cash and bank receipts and payments during the period to derive closing balance of cash and bank. Income and expenditureaccount is prepared to show the net result of the operation during the period to derive surplus or deficit.

Answer 2

The receipts and payments account summarizes receipts and payments made by a non-trading concern during a particular period of time (usually one year). Its is used to prepare income and expenditure account of non-trading concerns.