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The essential features of receipts and payments account are as follows:

(a) Summary Of Cash Transactions: All cash receipts and payments made by the concern during the accounting period are recorded in this book. Therefore, receipts and payments account can be taken as a summary of cash transactions.

(b) Cash And Bank Items In One Column: All receipts either cash or bank are recorded in receipts column of receipts side where all cash and bank payments are recorded in one column of payment column of receipts and payments account. The cash and bank transactions are merged toavoidcontra entries of cash and bank transactions.

(c) No Distinction Between Capital And Revenue: All cash receipts and cash payments irrespective of capital and revenue nature are recorded in receipts and payments account. No distinct is made for capital receipts , revenue receipts, capital expenditures and revenue expenditures.

(d) Opening And Closing Balance Of Cash: Receipts and payments account starts from opening balance of cash and bank ends with the closing balance of cash and bank.

(e) Recording Of Cash Receipts And Payments: All cash and cheque receipts are recorded on debit side where as all cash and cheque payments are recorded on credit side of receipts and payments account.

(f) Ignores Non-cash Transactions: Receipts and payments account does not record non-cash transactions.

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