Concept:A receipts and payments account is a cash-based summary of transactions for a non-profit organisation.
Explanation:It records only actual cash received and actual cash paid during the period.
Payment of liabilities is included because it involves cash payment, so statement II is correct.
It does not show whether a cash payment is revenue or capital expenditure, so statement III is correct.
It performs the same function as the cash book in a profit organisation, so statement IV is correct.
It does not record subscription in arrears until the cash is actually received, so statement I is incorrect.
Answer:The correct option is B. II, III and IV.