Question

why depreciation on fixed assets is not recorded in receipts and payment account​

Answer 1

Answer:

Explanation:

Receipts and payments are cash transactions. Depreciation is an accounting estimate of the value of an asset that you purchased or created (cash) in a previous period spread over the future periods of it’s intended lifetime. It is therefore not a cash item.

You would see the total value of depreciation (for the whole asset life) in the prior periods that you either purchased the asset or created it internally as a single or collective sum of payments.

Answer 2

Answer:

Receipt and payment account records cash transactions on the other hand depreciation is a non cash expense. So it is recorded in income and expenditure account.