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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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