Menu
Limitations of receipts and payments account.
Can someone explain the paragraph on limitations of receipts and payments account in the page 9.3 of the IPCC study material of accounting?
Replies (1)
receipts and payments a/c considers all cash and bank transactions including,
transactions of capital nature
transactions relating to periods other than the reporting period(previous year or next year)
hence receipts and payments a/c doesn't represent the actual surplus of the entity(which is arrived at considering only revenue natured items relating to the current year whether or not actually paid or received). hence, receipts and payments a/c cannot be used to ascertain the true of the financial results of the entity.
transactions of capital nature
transactions relating to periods other than the reporting period(previous year or next year)
hence receipts and payments a/c doesn't represent the actual surplus of the entity(which is arrived at considering only revenue natured items relating to the current year whether or not actually paid or received). hence, receipts and payments a/c cannot be used to ascertain the true of the financial results of the entity.
Recent Topic
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
- Return filing for intervening period upto date of
- EPF Withdrawal taxation
- While e filing otp not generating
Related Topics
CAclubindia
