Cash receipts and cash payments

Cash receipts and cash payments of both capital and revenue nature are recorded here.
Only cash transactions are recorded here.
It will generally show debit balance. In case of bank overdraft balance, however, its netbalance may be credit. Again, it may also show nil balance but such occasion is rare.
Its closing balance indicates closing cash in hand and closing cash at bank.
It is not an account within the Double Entry System if is a statement only.
(8) It is prepared on the last day of the accounting year.ADVANTAGES:
The following advantages are derived from Receipts and Payments Account;
Total receipts and total payments under various heads are available at a glance.
The amount of cash in hand at the year-end can be ascertained.
The correctness of Cash Book can be verified through it, The total of Debit side of CashBook will agree with that of Receipts side of Receipts and Payments Account. On the other hand, the totalof Credit side of Cash Book will agree with that of Payments side of Receipts and Payments Account. .
METHOD OF PREPARATION:
Receipts and Payments Account is prepared with all the cash receipts and cash payments of the whole year. The net result of cash receipts and cash payments of a fixed period of time is determined through this account. So it's heading will bei
Receipts and Payments Account for the year ended 31.12.2005 (If accounting year ends on 31.12.2005)
Its left-hand side is called "Receipts" and right-hand side "Payments". On the left-hand (i.e. Receipts) side all cash receipts are recorded, while on the right-hand (i.e. Payments) side all cash payments are written, arranged in a classified form. It starts with last year's closing cash in hand and cash at bank and closes with current year's closing cash in hand and cash at bank. In other words, its opening balance indicates last year's closing cash in hand and cash at bank, while its closing balance means current year's closing cash in hand and cash at bank.
DISTINCTION BETWEEN CASH BOOK AND RECEIPTS AND PAYMENTS ACCOUNT
In fact Receipts and Payments Account is the Cash Book in a summarized form. Yet certain distinctions are observed between the two