Question

Its balance at the end shows the cash in hand and at bank (or overdraft) at the end of the year.

Options

• Receipts and Payments Account

• Income and Expenditure Account

• Balance Sheet

• None of these

Answer 1

Receipts and Payments Account

Explanation:

The Receipts and Payments Account balance at the end of the year reflects the cash in hand and at the bank (or in overdraft). This account describes all cash transactions during the accounting period, including all receipts and payments. It provides a clear view of the organization's cash flow and liquidity position at the end of the year.