How to Use NCERT Solutions Effectively
Learn the best strategies to make the most of NCERT solutions for your exam preparation.
Read MoreWhat are the features of Receipt and Pay | Class 12 Accountancy Chapter Accounting for Not-for-Profit Organisation, Accounting for Not-for-Profit Organisation NCERT Solutions
Q4.
What are the features of Receipt and Payment Account?
1. It is a summary of the cash book. Its form is identical with that of a simple cash book (without discount and bank columns) with debit and credit sides. Receipts are recorded on the debit side while payments are entered on the credit side.
2. It shows the total amounts of all receipts and payments irrespective of the period to which they pertain . For example, in the Receipt and Payment Account for the year ending on March 31, 2016, we record the total subscriptions received during 2015–16 including the amounts related to the years 2014–2015 and 2016-2017. Similarly, taxes paid during 2015–16 even if they relate to the years 2014–15 and 2016–2017.
3. It includes all receipts and payments whether they are of capital nature or of revenue nature.
4. No distinction is made in receipts/payments made in cash or through banks. With the exception of the opening and closing balances, the total amount of each receipt and payment is shown in this account.
5. No non-cash items such as depreciation outstanding expenses accrued income, etc. are shown in this account.
6. It begins with opening balance of cash in hand and cash at bank (bank overdraft) and closes with the year end balance of cash in hand/cash at bank or bank overdraft. In fact, the closing balance in this account (difference between the total amount of receipts and payments) which is usually a debit balance reflects cash in hand and cash at bank unless there is a bank overdraft.
Study Tips for Answering NCERT Questions:
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
- Read the question carefully and focus on the core concept being asked.
- Reference examples and data from the chapter when answering questions about Accounting for Not-for-Profit Organisation.
- Review previous year question papers to get an idea of how such questions may be framed in exams.
- Practice answering questions within the time limit to improve your speed and accuracy.
- Discuss your answers with your teachers or peers to get feedback and improve your understanding.
Important Questions & Answers
Why is this answer important for exams?
This question is important because it tests key concepts from the NCERT syllabus and is frequently asked in CBSE exams.
Which NCERT concept is used in this question?
This question is based on core NCERT concepts explained in the chapter and should be revised thoroughly before exams.
What common mistakes should be avoided in this question?
Students often lose marks by skipping steps, writing incomplete explanations, or misunderstanding keywords used in the question.
What is the correct answer to: What are the features of Receipt and Payment Account??
1. It is a summary of the cash book. Its form is identical with that of a simple cash book (without discount and bank columns) with debit and credit sides. Receipts are recorded on the debit side while payments are enter...
How do you solve What are the features of Receipt and Payment Account? step by step?
Step-by-step explanation:
• 1
• It is a summary of the cash book
• Its form is identical with that of a simple cash book (without discount and bank columns) with debit and credit sides
• Receipts are recorded on the debit side while payments are entered on the credit side
•
Latest Blog Posts
Stay updated with our latest educational content and study tips
CBSE Exam Preparation Tips
Expert tips and tricks to excel in your CBSE board exams with confidence.
Read More
Student Discussion
Be the first to comment.
ADD NEW COMMENT