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Question
State whether the following statement is True or False with reasons.
Receipts and Payments Accounts do not have any opening balance.
Options
True
False
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Solution
Receipts and Payments Accounts do not have any opening balance. - False.
Explanation:
Receipts and Payments Account is just like a cash book of trading concern, and the opening balance (Cash or Bank or Cash and Bank) must be there to start recording transactions.
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| ₹ | |
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| Dr. | Receipts and payment Account for the year ended 31st March, 2020 |
Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Balance b/d | By Salaries to Teaching Staff |
10,00,000 | |
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| 21,38,000 | 21,38,000 | ||
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