Match List – I with List – II. List - I List - II (A) Receipt and Pay… | Accountancy Part A CUET question

Match List – I with List – II.

List - I	List - II
(A) Receipt and Payment account	(I) Accrual Basis
(B) Income and Expenditure account	(II) Capital Item
(C) Subscription	(III) Cash Basis
(D) Machinery	(IV) Revenue Item

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 3

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

(A) Receipt and Payment account — this matches (III) Cash Basis. It is a summary of the cash and bank transactions of the year.

(B) Income and Expenditure account — this matches (I) Accrual Basis. Like a profit and loss account, it shows the income and expenditure of the year whether received or paid or not.

(C) Subscription — this matches (IV) Revenue Item. Subscriptions are the regular income of a not-for-profit organisation and are shown in the Income and Expenditure Account.

(D) Machinery — this matches (II) Capital Item. Machinery is a fixed asset; buying it is capital expenditure shown in the Balance Sheet.

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):
Income and Expenditure Account – “It is the summary of income and expenditure for the accounting year. It is just like a profit and loss account prepared on accrual basis in case of the business organisations. It includes only revenue items and the balance at the end represents surplus or deficit.”

NCERT (Pre-rationalised edition):
Some Peculiar Items – “… Subscriptions: Subscription is a membership fee paid by the member on annual basis. This is the main source of income of such orgnisations.”

NCERT (Pre-rationalised edition):
Terms Introduced in the Chapter – “… While the former records both capital and revenue receipts and payments relating to any accounting year, the latter records only revenue items relating to the current accounting year.”