NABTEB QUESTIONS

Differentiate between Receipts and Payments Accounts. – NABTEB QUESTION

Receipts Accounts: Are those items which a business received on cash basis rather than on credit basis. They include subscriptions, donations due and cash sales. They are always recorded on the debit side of receipts and payment accounts, whereas, payment accounts are those items which a club has paid for and they are always written on the credit side of the receipt and payment accounts. The difference between them is the balance which may be debit or credit.

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