Steps in sequence in the preparation of Receipt and Payment Account will be:
(A) Find out the difference between the total of debit side and the total of credit side
(B) Show the total amounts of all receipts on debit side
(C) Take the opening balance of cash in hand and bank and enter on the debit side
(D) Show the total amounts of all payments on credit side
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (C), (B), (D), (A)
A Receipt and Payment Account is a summary of the cash book, so it is prepared in the same order as a cash account is balanced:
(C) Take the opening balance of cash in hand and bank and enter on the debit side — the account opens with the cash and bank balance.
(B) Show the total amounts of all receipts on debit side — every receipt, capital or revenue, of any period.
(D) Show the total amounts of all payments on credit side — every payment, capital or revenue, of any period.
(A) Find out the difference between the total of debit side and the total of credit side — the difference is the closing cash and bank balance, entered on the credit side.
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):
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