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Question
Which of the following is/are correct statement(s)?
Statement 1: Income and Expenditure Account includes both capital and revenue items.
Statement 2: Receipts and Payments Account is a summary of cash transactions over a specific period.
Options
Only Statement 1 is correct.
Only Statement 2 is correct.
Both Statements 1 and 2 are correct.
Both Statements 1 and 2 are incorrect.
MCQ
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Solution
Only Statement 2 is correct.
Explanation:
The Receipts and Payments Account acts as a real account, providing a chronological overview of all actual cash and bank transactions over a given financial period.
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