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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Sarvodaya Mahila Mandal, a registered society, records only cash and bank movements during the year and prepares a statement summarising all cash received and paid, classified by nature, with opening and closing cash and bank balances. Which statement is this?

This is a Receipts and Payments Account. It summarises actual cash and bank receipts and payments during the period, beginning with opening balances and ending with closing balances, and it ignores accruals, unlike the Income and Expenditure Account, which shows surplus or deficit.

  1. AIncome and Expenditure Account
  2. BReceipts and Payments AccountCorrect
  3. CBalance Sheet
  4. DTrial Balance

Explanation

A Receipts and Payments Account is a summary of actual cash and bank transactions of the period, starting with opening balances and ending with closing balances. It does not follow the accrual basis. The Income and Expenditure Account, by contrast, is prepared on accrual basis and shows surplus or deficit.

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