Question

what type of balance did receipt and payment account and income and expenditure account show? and why?​

Answer 1

What type of balance did receipt and payment account and income and expenditure Account show? and why ?

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✨✨RECEIPT AND PAYMENT ACCOUNT

Balance shown - Cash in hand or Cash at bank

Reason - Receipt and payment account shows cash in hand and cash at bank at the end of the each year .Its reason is that receipt and payment only deals with cash. .Hence cash in hand and cash at bank is shown as balance at the end in receipt and payment account.

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✨✨ INCOME AND EXPENDITURE ACCOUNT.

Balance shown - Surplus and defecit at the every day contact.

Reason - Income and expenditure Account shown surplus or deficit at every day .The Account deals with every day income and expenditure .Hence more income show surplus on credit side and if more expenditure show in Account then it means deficit is shown on debit aide...

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✨✨NOTE.

BOTH ACCOUNT ARE THE MAIN ACCOUNT AND RECORD WHEN THERE ARE NON PROFIT ORGANIZATIONS.

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