Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Which of the following statement is not true for receipts and payments account?

Options:

It is the summary of the cash book

Depreciation is not shown in it

The receipt and payment related to the current, preceding and succeeding accounting periods

It records receipt and payments of revenue nature only

Correct Answer:

It records receipt and payments of revenue nature only

Explanation:

A receipt and payment account is a summarized cash book. It records all cash transactions whether it is revenue nature or capital nature.