The main features of receipt and payment account can be highlighted as follows:
1. Summary Of Transactions
Receipt and payment account is a summary of annual cash and bank transactions made by the organization.
2. Debit And Credit Rule
Cash receipts are debited and cash payment are credited as it is a real account.
3. No Distinction
Both capital and revenue nature cash receipts and payments are recorded in receipt and payment account.
4. No Double Entry System
It is just a summary of cash and bank transactions or cash book. It does not follow double entry system.
5. Only Cash Transactions
Receipt and payment account records only cash and bank transactions and avoids non-cash transactions.
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6. No Profit Or Loss
It does not disclose profit or loss of the company.
7. Base For Income And Expenditure Account
Income and expenditure account is prepared at the end of the year on the basis of receipt and payment account.
