Given: I. It records subscription in arrears II. Payments of liabilities is effected III. The...
FINANCIAL
JAMB 2017
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. I,II and IV
- B. II,III and IV
- C. III and IV
- D. I,II and III
Correct Answer: B. II,III and IV
Explanation
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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