Home › Tamil Nadu HSC (Class 12) › accountancy › Accounts of Not-for-Profit Organisation › Which statement about the receipts and payments …
Which statement about the receipts and payments account is correct?
AIt records only the revenue items of the current year
BIt records accrued income and outstanding expenses too
CIt records only those items relating to the current year
DIt records both capital and revenue items, of any period
Answer & Solution
Correct answer: D. It records both capital and revenue items, of any period
1. All cash receipts and cash payments are recorded, whether they are of a capital or a revenue nature.
2. They may relate to the current year, to previous years or to subsequent years.
3. The textbook puts it as: irrespective of the period for which the amount is received or paid, it is recorded if cash is received or paid during the year.
4. Restricting the account to revenue items, or to the current year alone, describes the income and expenditure account instead.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.3_
Related questions
Which item would appear in the receipts and payments account but NOT in the income and expIn this textbook's balance sheets, legacies and life membership fees are:A club has 400 members each paying Rs 150 a year. Subscription outstanding for the currentA match fund stood at Rs 30,000. Receipts for the match fund during the year were Rs 22,50A club's assets total Rs 1,30,000 and its liabilities, being subscription in advance Rs 5,Prize fund stood at Rs 60,000. During the year interest on prize fund investments was Rs 6Opening stock of sports materials was Rs 3,000, purchases during the year Rs 9,000 and cloA club has 300 members each paying Rs 200 a year. Subscription received for the current ye