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Question : The nature of Receipts and Payment Account is:

Option 1: Nominal

Option 2: Artificial Personal

Option 3: Representative Personal

Option 4: Real


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Real


Solution : Receipts and Payment Account is a real account as the rule of a real account, i.e., 'Debit what comes in and credit what goes out' is followed. Thus, Payments are recorded on the credit side, and receipts are recorded on the debit side.
Hence, the correct option is 4.

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