Definitions 100% work

2. Only cash transactions are recorded here.
3. The portion of income or expenditure whichhas been received or paid in cash this year,is recorded here.
4. Transactions involving cash receipts arerecorded on Debit side and those involvingcash payments are recorded on Credit side.
5. Transactions—both capital and revenue—are recorded here.
6. Its balance can never be credit.

7. Its .balance is carried over to Receipts &Payments Account of the next year.
8. This account shows opening balance exceptin the first year.
9. The closing balance of this accountrepresent in the first year.
It is not confined to cash transactions onH, i.e. non-cash transactions are also included in it.
The whole amount of income oil expenditure—whether received or paid iij cash or not—is recorded in it.
All expenditures are recorded on Debit side and all incomes on Credit side.
5. Only revenue transactions are recorded here.
6. Its balance may be either debit or credit.
7. Its balance is transferred to Capital Fund.
8. It has no opening balance.
9. Its closing balance represents either surplus Ior deficit. Credit balance indicates surplus, jwhile debit balance indicates deficit.

10. This account records transactions relating topast, present and future years. Hence, noadjustment is made for pre-received oraccrued incomes and pre-paid oroutstanding expenses. In a word, it isprepared on cash basis.
11. It is, in fact, an abridged Cash Book.
10. Transactions relating to the current yearonly are recorded in it. Hence, adjustmentsare invariably made for pre-received oraccrued incomes and pre-paid oroutstanding expenses. In a word, it mprepared on Accrual basis.*
11. It is, infect, similar to Profit & Loss Accountof a profit-seeking business concern.

12. It is outside the Double Entry system.
13. It is not accompanied by Balance Sheet.
14. Its preparation is not compulsory.
12. It is within the Double Entry system.
13. It is accompanied by Balance SheetIt is compulsory. It must be prepared iiorder to ascertain the true result of tconcern