Question

what is the basis of accounting followed while preparing the receipt and payment account

Answer 1

All the information necessary for the preparation of this account is available from cash book. Various cash receipts and cash payments during the whole year find place in this account 

Answer 2

While we are preparing receipt and payment account we have to always kept in mind that the incomes which we had received always are gone to receipt account which is made on debit side and the expense or if the cash goes out then it should goes to payments account which is on credit side..