write difference between receipt payment and cash book?
Answers
Answer:
Step-by-step explanation:
Receipts
1. It is a real account showing a summary of all cash transactions.
2. Receipts and Payments Account is prepared at the end of the accounting period.
3. This is prepared by non-profit entities.
4.. All receipts are recorded under one column i.e., receipts side and all payments are recorded under one column i.e., payments side.
5. Ledger Folio (L.F.) column is not there.
Cash Book:
1. Cash book is a book of original entry.
2. Cash book is written on daily basis.
3. This is prepared by commercial entities and can also be prepared by non-profit entities.
4. All receipts are recorded either under cash column or bank column; similarly all payments are recorded either under cash column or bank column.
5. Cash book has Ledger Folio (L.F.) A columns
A cash book is prepared by both trading and non-trading concerns.
Receipts and payments a/c:
It is mostly prepared by non-trading concerns. Trading concerns don’t need to prepare it.
Step-by-step explanation:
Cash book: The nature of cash book is like a current account in which transactions are recorded whenever they occur.
Receipts & payments : Receipts and payments account is a periodical account which is prepared at the end of a certain period which is usually one year.
A Cash Book is a type of subsidiary book where cash (or) bank receipts and cash (or) bank payments made during a period are recorded in a chronological order. Receipts are recorded on the debit – the left hand side, and payments are recorded on the credit – right hand side.
A receipt is a piece of paper that you get from someone as proof that they have received money or goods from you.
#Learn more:
Explain the statement: “Receipt and Payment Account is a summarised version of Cash Book”.
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