Given:

I. It records subscription in arrears

II. Payments of liabilities is effected

III. The account does not show if cash payment is revenue or capital expenditure

IV. It performs the same function as cashbook

The features of receipts and payment account includes

  • A It records subscription in arrears
  • B I,II and IV
  • C II,III and IV
  • D III and IV
  • E I,II and III
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The correct answer is B. I,II and IV

The receipts and payment account is one of the account of a non-profit oriented organization that performs the same functions as cash account in a profit oriented organization

all forms of payment since cash is involved will be recorded and also performs the same functions as the cashbook does for profit oriented organization

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