Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

If rent paid or salary paid is recorded in the credit side of the cash book, where it is recorded in the receipt and payment account?

Options:

Receipt side of receipt and payment account

Payment side of receipt and payment account

Both (a) and (b)

None of these

Correct Answer:

Payment side of receipt and payment account

Explanation:

The correct answer is option 2- Payment side of receipt and payment account.

If an organisation is paid rent or salary to the workers then it is paid by the cash or bank balance, so it is recorded in the payment side of the receipt and payment account.