CBSE Class 11-commerce Answered

Adjustments for outstanding expenses, prepaid expenses or depreciation are not made in receipts and payment accounts. Why?

Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM

Expert Answer

Because receipts and payment accounts record all cash receipts and cash payments, it is a consolidated cash book. It starts with an opening balance of cash andbank and ends with a closing balance of cash and bank. It does not take into consideration outstanding amounts of receipts and payments.

Answered by | 01 Jul, 2016, 05:14: PM