Receipt & Payment Account is a cash-basis summary of all cash receipts and payments during the period. Structure: Opening Balance (Cash/Bank balance at year-start), Add Receipts (all cash received), Deduct Payments (all cash paid), Closing Balance (cash at year-end). Receipts include: Subscriptions received in cash, Donations received, Entrance Fees received, Legacies received, Grant receipts, Interest/Dividend received, Sale of Assets proceeds, Loans received. Payments include: Salaries paid, Rent paid, Utilities paid, Supplies paid, Loan repayment, Asset purchases, Program expenses paid. Characteristics: Includes all cash movements regardless of period they relate to, Includes capital items (asset purchases, loan repayments), Does not include non-cash items (depreciation, accruals), Opening and closing balances shown. R&P Account Equation: Opening Balance + Receipts = Payments + Closing Balance. Purpose: Show cash flow and liquidity position, Identify sources and uses of cash, Reconcile cash movements with bank statement. This account is prepared from the Cash Book and supporting records. Closing Balance shown must match the bank balance and cash in hand. R&P Account provides first-level analysis of financial activities. Exam tip: Master the structure and calculation of Opening Balance; practice identifying receipts and payments from transaction descriptions; verify Opening Balance + Receipts = Payments + Closing Balance.