Question

Steps in sequence in the preparation of Receipt and Payment Account will be:
1. Find out the difference between the total of debit side and the total of credit side
2. Show the total amounts of all receipts on debit side
3. Take the opening balance of cash in hand and bank and enter on the debit side
4. Show the total amounts of all payments on credit side
Choose the correct answer from the options given below:

• A. (A), (B), (C), (D)
• B. (A), (C), (B), (D)
• C. (B), (A), (D), (C)
• D. (C), (B), (D), (A)

Answer 1

The Correct Option is D

\(\textbf{Step 1:}\) Begin the Receipt and Payment Account with the opening balance of cash in hand and at bank. This is the starting point for the account and is entered on the debit side.
\(\textbf{Step 2:}\) Then, record all cash receipts during the accounting period on the debit side.
\(\textbf{Step 3:}\) Next, record all cash payments made during the period on the credit side.
\(\textbf{Step 4:}\) Finally, calculate the difference between the total of the debit and credit sides to determine the closing balance.

Thus, the correct sequence is: (C), (B), (D), (A).