end of the accounting period, this account is balanced to ascertain the balance of cash in hand or at the bank or the overspent amount or bank overdraft Features The main features of the Receipts and Payments Account can be summarised as follows: (a) It is a real account, i... it is a summarised copy of cash receipts and cash payments. (b) It's form is similar to Cash Book (without discount and bank columns) with debit and credit sides. Receipts are recorded on the debit side while payments being entered on the credit side. lel It records all receipts and payments irrespective of the distinction between capital and revenue items. In other words, both capital and revenue receipts and payments are included (d) Only actual receipts and payments during the accounting period, whether relating to previous or current or succeeding years are recorded in it. le) The opening and closing balances in it mean cash in hand/bank in the beginning and at the end, respectively. The balance of Receipts and Payments Account must be debit being cash on hand and/or at bank, unless there is a bank overdraft. Illustration: From the following particulars taken from the Cash Book of a Club, prepare a Receipts and Payments Account Opening Balance: Rs. Cash in hand 100 Cash at bank 500 Receipts: Subscriptions Donations Payments: Rent paid General expenses Postage & stationary 70 Sundry expenses Closing Cash Balance 3,300 260 1400 210 30 200