alleryStart learning →The receipts and payments account is which type of account?
AA nominal account, like profit and loss
BA real account, summarising cash flows
CA personal account of the members
DA representative personal account
Answer & Solution
Correct answer: B. A real account, summarising cash flows
1. The receipts and payments account summarises the cash and bank transactions of the year.
2. The textbook states plainly that it is a real account in nature.
3. It begins with the opening balances of cash and bank and ends with the closing balances.
4. The income and expenditure account, by contrast, is a nominal account, which is the pairing this question tests.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.3_
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