Identify the salient features of Receipt and Payment Account from bel…

Identify the salient features of Receipt and Payment Account from below.

A. It is a summary of the Cash Book.
B. It shows all receipts and payments irrespective of the period to which they pertain.
C. It includes all receipts and payments whether they are of capital nature or of revenue nature.
D. No distinction is made in receipts/ payments made in cash or through bank in this account.
E. It shows non-cash items such as depreciation and outstanding expenses.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → A, B, C & D only

A. It is a summary of the Cash Book – true; it is the first salient feature.

B. All receipts and payments irrespective of the period – true; amounts of past, current and future years are all shown.

C. Capital and revenue items both included – true.

D. No distinction between cash and bank – true; each item is shown at its total amount.

E. It shows non-cash items such as depreciation and outstanding expenses – false; non-cash items are never shown in this account, as it records only actual receipts and payments.

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.

NCERT (Pre-rationalised edition):
Salient Features – “1. It is a summary of the cash book. Its form is identical with that of simple cash book (without discount and bank columns) with debit and credit sides. Receipts are recorded on the debit side while payments are entered on the credit side. 2. It shows the total amounts of all receipts and payments irrespective of the period to which they pertain . For example, in the Receipt and Payment account for the year ending on March 31, 2016, we record the total subscriptions received during 2015–16 including the amounts related to the years 2014–2015 and 2016-2017. Similarly, taxes paid during 2015–16 even if they relate to the years 2014–15 and 2016–2017. 3. It includes all receipts and payments whether they are of capital nature or of revenue nature. 4. No distinction is made in receipts/payments made in cash or through bank. With the exception of the opening and closing balances, the total amount of each receipt and payment is shown in this account. 5. No non-cash items such as depreciation outstanding expenses accrued income, etc. are shown in this account.”