Receipts and Payments Account is a report of cash and bank transactions during a period. It is used in place of an income and expenditure statement.
In other words,
● It is a consolidated summary of cash book, prepared for the required period.
● It starts with opening balance of cash and bank, and ends with closing balance of cash and bank.
● It does not take into account outstanding receivables and payables.
● It may be of capital or revenue nature, and relating to the current, previous or subsequent year, so long as they are actually received or paid.
The Receipts and Payments account displays information based on default primary groups. It is updated with every cash or bank transaction or voucher entry.
To know more, click the links below:
● Configuring the Receipts & Payment Accounts