With reference to Receipts & Payments Account which feature(s) is/are correct? 1. It is a real account. 2. It reveals the surplus or deficit for the year. 3. It is a summary of cash receipts. 4. It contains non-cash items.

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KollegeApply · Accepted Answer

1 and 3 Explanation: The Receipts and Payments Account is a real account since it represents cash assets and adheres to the golden rule of “debit what comes in and credit what goes out”. It just serves as a chronological overview of all actual cash and bank transactions and payments, while exposing the surplus or deficit is the responsibility of the income and expenditure account, and non-cash elements such as depreciation are completely removed.

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