Which of the following is the equivalent of the receipts payment accounts?
- income and expenditure accounts
-
cash book
- subscriptions account
- profit and loss account
The correct answer is: B
Explanation
Following are the characteristics of receipt and payment account:
- It is a summary of the cash book.
- We record all the cash receipts during the whole year on its debit side. ...
- We include both receipts and payments in cash whether they are of capital and revenue nature.
From the above characteristics we can say the receipt and payments account is equivalent to the cash book which is used in recording all cash transactions