Receipts and Payment Account

1. This account is also known as Cash Inward and Cash Outward Account. This account is a summary of Cash Book for a period of accounting.

2. All capital and revenue receipts are recorded on the debit side of Receipts and Payment Account while all capital and revenue expenditure is recorded on the credit side of this account.

3. This account does not count towards the item being accrued. Accrued receipts and accrued expenses are not shown in this account.

4. This account shows the initial cash balance and the final cash balance. If this account serves debit at the end of the accounting year, then this balance is shown as cash in hand or cash at the bank under the current asset title in the Balance Sheet. If this account is left credit, this balance is shown as bank overdraft under current liabilities in the Balance Sheet.