Which of the following is accounted for in receipts and payment account?

A. Subscriptions received in advance
B. Subscriptions due not yet received
C. Accrued expenses on annual dances
D. Depreciation of the club house

Correct Answer:

Option A – Subscriptions received in advance

Explanation

A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period. All cash received and paid during the period whether capital or revenue is included in this account. It contains Subscriptions received in advance