The correct sequence for preparing Receipt and Payment Account:
(A) Take the opening balance of Cash in hand and Cash at bank
(B) Find out the difference between total of Debit side and total of Credit side of the Account and enter the same on credit side as closing balance of cash/bank
(C) Total amounts of all receipts on its debit side
(D) Total amounts of all payments on its credit side
(E) None of the receivable income and payable expenses is to be entered in this account
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C), (D), (E), (B)
The Receipt and Payment Account is a summary of the cash book, so it is built in the order of a cash account: opening balance, receipts, payments, and the closing balance last.
(A) Take the opening balance of Cash in hand and Cash at bank — comes first, on the debit side.
(C) Total amounts of all receipts on its debit side — next, every receipt, capital or revenue, of any period.
(D) Total amounts of all payments on its credit side — then every payment on the credit side.
(E) None of the receivable income and payable expenses is to be entered in this account — this follows, because no cash has moved for them.
(B) Find out the difference between total of Debit side and total of Credit side — last: the balancing figure is the closing cash/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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