What are the features of Receipt and Payment Account?
The following are the features of Receipt and Payment Account:
1. Nature: It is a Real Account. It is a summarised version of Cash Book.
2. Nature of Transactions: It records only cash and bank transactions. Transactions other than cash and bank like depreciation, loss/ profit on sale of assets, etc. are not recorded in this account.
3. No distinction between Capital and Revenue items: It records all cash and bank receipts and payments of both capital and revenue nature.
4. Opening and closing balance: It begins with the opening balance of cash and bank and ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.
5. Purpose: It reveals the cash position of an organisation. It helps to ascertain the total amount paid and received during an accounting period.
Popular Questions of Class 12th accountancy
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What is Capital Fund? How is it calculated?
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What is subscription? How is it calculated?
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What is sacrificing ratio? Why is it calculated?
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Why is Profit and Loss Adjustment Account prepared? Explain.
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List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.
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Why there is need for the revaluation of assets and liabilities on the admission of a partner?
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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
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Identify various matters that need adjustments at the time of admission of a new partner.
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State the meaning of ‘Not- for- Profit’ Organisations.
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On what occasions sacrificing ratio is used?
Recently Viewed Questions of Class 12th accountancy
- Q:-
What is Capital Fund? How is it calculated?
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What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?
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What is sacrificing ratio? Why is it calculated?
- Q:-
State the meaning of ‘Not- for- Profit’ Organisations.
- Q:-
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
- Q:-
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.
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Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?
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On what occasions sacrificing ratio is used?
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State the meaning of Receipt and Payment Account.
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State the meaning of Income and Expenditure Account.
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