Accountancy Part AAccounts for Non Profit Organsiation

Receipt and payment account records :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → All receipts and payments realised and made during the year

The Receipt and Payment Account is a summary of the cash book: it shows every cash receipt and payment of the year, capital or revenue, and nothing that is not paid in cash.

Option (1) Only capital items — Incorrect. It records revenue items as well.

Option (2) Only revenue items — Incorrect. It records capital items as well.

Option (3) All outstanding expenses — Incorrect. Outstanding expenses are not paid, so they never enter 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):
Receipt and Payment Account – “It is prepared at the end of the accounting year on the basis of cash receipts and cash payments recorded in the cash book. It is a summary of cash and bank transactions under various heads.”

NCERT (Pre-rationalised edition):
Salient Features – “… 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.”