Which of the following options given below are correct?
A. A balancing figure on credit side of Income and Expenditure Account denotes excess of expenses over incomes.
B. Surplus of Income and Expenditure Account is deducted from the Capital/General Fund.
C. Receipts and Payments Account is equivalent to Profit and Loss Account.
D. Receipts and Payments Account records the receipts and payments of revenue nature only.
E. Receipts and Payments Account does not differentiate between capital and revenue receipts.
Choose the correct answer from the options given below.

A, E only

The Receipt and Payment Account is the summary of cash and bank transactions which helps in the preparation of Income and Expenditure Account and the Balance Sheet. Besides, it is a legal requirement as the Receipts and Payments Account has also to be submitted to the Registrar of Societies along with the Income and Expenditure Account, and the Balance Sheet. Income and Expenditure Account is akin to Profit and Loss Account. The Not-for-Profit Organisations usually prepare the Income and Expenditure Account and a Balance Sheet with the help of Receipt and Payment Account. However, this does not imply that they do not make a trial balance. In order to check the accuracy of the ledger accounts, they also prepare a trial balance which facilitates the preparation of accurate Receipt and Payment Account as well as the Income and Expenditure Account and the Balance Sheet. I & E A/c shows the net operating result in the form of surplus (i.e. excess of income over expenditure) or deficit (i.e. excess of expenditure over income), which is transferred to the capital fund shown in the balance sheet.