Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Assertion: All the receipts and payments irrespective of their nature and period are shown in Receipt and payment Account.
Reason: Receipt and payment Account is Real Account in nature.

Options:

A is correct but R is incorrect .

A is incorrect but R is correct.

Both A and R are correct and R is correct explanation of A.

Both A and R is correct but R is not the correct explanation of A.

Correct Answer:

Both A and R is correct but R is not the correct explanation of A.

Explanation:

Both are correct. But Reason of A is that the Receipt and payment Account is prepared on the cash basis.