Accountancy Part AAccounts for Non Profit Organsiation

Match List - I with List - II. List - I List - II (A) Receipt and Pay…

Match List - I with List - II.

List - I	List - II
(A) Receipt and Payment A/c is	(I) Accrual Basis
(B) Receipt and Payment A/c records transactions of	(II) Only Revenue nature
(C) Income and Expenditure A/c records transactions of	(III) Capital & Revenue Nature
(D) Income and Expenditure A/c is prepared on	(IV) Real A/c

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

(A) Receipt and Payment A/c is — this matches (IV) Real A/c. It is a summary of the cash book, i.e. of cash and bank, which are real accounts.

(B) Receipt and Payment A/c records transactions of — this matches (III) Capital & Revenue Nature. Every cash receipt and payment is recorded, whatever its nature.

(C) Income and Expenditure A/c records transactions of — this matches (II) Only Revenue nature. Like a profit and loss account, it takes only revenue items.

(D) Income and Expenditure A/c is prepared on — this matches (I) Accrual Basis. Outstanding and prepaid items and depreciation are adjusted into it.

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):
Distinction between Income and Expenditure Account and Receipt and Payment Account

Extract from the NCERT textbook

NCERT (Pre-rationalised edition):
Income and Expenditure Account – “… The Income and Expenditure Account is prepared on accrual basis with the help of Receipts and Payments Account along with additional information regarding outstanding and prepaid expenses and depreciation etc.”