Maharashtra State BoardHSC Arts 12th Board Exam
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Select the Most Appropriate Answer from the Alternatives Given Below and Rewrite the Sentence. - Book Keeping and Accountancy

MCQ

Select the most appropriate answer from the alternatives given below and rewrite the sentence.
Non-Cash items are not recorded in_____________ 

Options

  •  Income and Expenditure

  • Receipt and Payments Accounts

  • Balance Sheet

  • Profit and Loss Account

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Solution

Non-Cash items are not recorded in Receipts and Payments Account.

Explanation: Receipts and Payments Account is a summary of cash and bank transactions over a certain period. It is prepared by societies, clubs, associations etc. It is prepared on cash basis. So, any transaction that is not recorded in the Cash Book will not be entered in the Receipts and Payments Account also.
 
On the other hand, Income and Expenditure Account, Balance Sheet and Profit and Loss Account record non- cash items such as depreciation. These items are not recorded in the Receipts and Payments Account.

  Is there an error in this question or solution?
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 7 Accounts of 'Not For Profit' Concerns
Exercise | Q 9 | Page 228
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