Which of the following is accounted for in receipts and payments account?
Answer Details
Receipts and payments account is a summary of cash transactions of a club or organization over a specific period. It records all cash received and paid out by the club during that period.
Out of the options listed, the only item that is accounted for in receipts and payments account is subscriptions due but not yet received. This is because subscriptions are considered a cash item as they are expected to be paid in cash at some point. Therefore, when a club records the amount of subscriptions that are due but have not yet been received, it is essentially recording a cash transaction that is expected to occur in the future.
Accrued expenses on annual dances, interest on bank deposits, and depreciation of the club house are not accounted for in the receipts and payments account. Accrued expenses are not cash transactions, but rather expenses that are recognized in the accounts when they are incurred, even if they have not been paid for. Interest on bank deposits is an income item and is recorded in the income and expenditure account. Depreciation of the club house is a non-cash item and is recorded in the balance sheet.