Question:
Receipts and Payments Account is
Receipts and Payments Account is
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Receipts and Payments Account is a nominal account that tracks all income and expenses, including cash receipts and payments.
Updated On: Oct 6, 2025
- Real Account
- Nominal Account
- Personal Account
- None of these
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The Correct Option is B
Solution and Explanation
Step 1: Understanding Receipts and Payments Account.
Receipts and Payments Account is a nominal account, as it records all receipts and payments made by an organization during a specific period. It is used for recording transactions related to cash inflows and outflows.
Step 2: Analyzing the options.
- (A) Real Account: Real accounts deal with assets, not receipts and payments.
- (B) Nominal Account: This is correct. Receipts and Payments Account is a nominal account as it tracks income and expenses over a period.
- (C) Personal Account: Personal accounts deal with individuals and organizations, but not directly with receipts and payments.
- (D) None of these: This is incorrect, as (B) Nominal Account is the correct answer.
Step 3: Conclusion.
The correct answer is (B) Nominal Account, as Receipts and Payments Account is a nominal account.
Final Answer: The correct answer is (B) Nominal Account.
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