Accounting Principles and Practices

Receipt and Expenditure is simply a summary of the cash transactions as in the cash book, analyzed and classified under suitable heading, including the opening and closing balances.

The Receipt and Payment account starts with opening balance of cash and bank and end with the closing balance of cash and bank. 

A receipt and payment account generally shows a debit balance. To ascertain any missing item of receipt or payment, generally cash book summary is prepared.

Receipt and Payment account is a summary of cash/bank transactions of NPO for specialized accounting period. This Statement records both capital and revenue nature items.

Receipt and Payment account is a summarized statement of all cash transactions during an accounting year. Income and Expenditure account is the account through which surplus or deficit of a non-profit-seeking concern is ascertained.

Income and expenditure account records income on the right hand side and expenditure on the left hand side. An Income and expenditure account is just like Profit and Loss account  where expenses and losses are debited and income and gains are credit. 

Receipt and Payment account is prepared on the last day of accounting year. This account records transaction related to cash in the accounting year.

Receipt and Payment account is a summary of cash book where receipts are recorded on debit side and payments are recorded on credit side.

A receipts and payment account is just like a cash account hence it begins with opening balance and ends with closing balance of cash. Hence the debit balance of receipts and payments account just like cash account reflects closing balance of cash at the end of the year after taking into account all the payments and receipts.

Option A is correct. Legacy is the amount which a not for profit organisation receive as per the will of a deceased person. As this is a receipt it is recorded on debit side of Receipts and Payments A/c. 

Excess of revenue income over revenue expenditure is not a loss rather it is net income. Net income is one of the key indicators of company profitability, along with gross margin and before tax income. For example - revenue of ₹ 10,00,000 and expenses of ₹900,000 yield net income of ₹100,000. In this example, if the amount of expenses had been higher than revenues, the result would have been termed a net loss rather than a net income. 

b'At the time of retirement or death of a partner, the books of accounts of firm have to be settled. The outgoing partner or his legal representatives have to be paid their dues. For calculation of correct amount to be paid, it is important that all assets and liabilities must be recorded at their current values and if there is any unrecorded assets and liabilities that should also be recorded. For this. a revaluation account is opened. A revaluation account is prepared to ascertain net profit or loss on revaluation of assets and liabilities and bringing unrecorded items into books. '

Option D is correct. Receipts and payments Account is prepared on cash basis of accounting. It is a summarized cash book. All the cash receipts during the whole year is recorded on debit side. All the cash payments during the whole year is recorded on credit side. incomes or expenses that do not involve the inflow of cash are not recorded in this account.

b'Option C is correct. A Receipt and Payment account is simply a summary of the cash transactions as in the cash book, including opening and closing balances. All cash receipts and cash payments find place in this account whether they are of revenue nature or capital nature. '