Question

Mention any two features of Receipts and Payments Account.

State two features of Receipts and Payments Account.

Answer 1

Features of Receipts and Payments Account are as follows: 

1. The Account is a summary of the Cash Book combining cash and bank transactions.
2. The Account begins with the opening balance of cash in hand and at bank. Cash in hand is written on the debit side because it always shows a debit balance. Cash at bank (debit balance) is written on the debit side, but overdraft (credit balance) is written on the credit side.