Receipt and Payment Accounts are simple yet powerful financial statements used mainly by non-profit organizations, clubs, and societies. They record all cash inflows and outflows during a specific period, providing a clear picture of actual cash movement.
These accounts are prepared on a cash basis , excluding non-cash items like depreciation. They help maintain transparency, simplify audits, and improve cash flow management.
Students pursuing an Online B.Com Course in India can explore these accounts in depth to understand how cash-based entities manage their finances effectively.
Mastering these basics builds a strong foundation in accounting, transparency, and financial control — essential skills for every commerce student!
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