Question

Why tournament fee comes in receipt side of receipt and payment a/c

Answer 1

Answer:

1.It is a summary of the cash book.

2.We record all the cash receipts during the whole year on its debit side. Whereas, we write all the cash payments for the whole year on its credit side.

3.We include both receipts and payments in cash whether they are of capital and revenue nature.

4.We record only cash transactions in receipt and payment account.

5.It generally shows a debit balance. In the case of overdraft balance, its net balance may be credit.

6.Its closing balance shows closing cash in hand and closing cash at the bank.

Non-cash items such as depreciation, outstanding expenses, accrued incomes are also shown in this account.

Explanation:

hope this will help you..