Q.What is Receipts and Payments Account ?

The Receipts and Payments Account is a real account — in effect, a summarised cash book — that records every cash and bank receipt and payment of the NPO during the year, starting with the opening cash/bank balance (debit side) and ending with the closing cash/bank balance (the balancing figure, credit side).

Its defining feature is that it makes no distinction at all: it records capital items alongside revenue items, and it records amounts relating to any year (past, present, or future) as long as the cash actually moved during the current year. It never contains non-cash adjustments such as depreciation, outstanding …