What are the basic guidelines for handling receipts?

• A. A receipt should be issued for each payment; receipts should be accounted for periodically; the person receiving them should sign
• B. Receipts are optional and can be discarded
• C. Receipts should be issued only at year-end
• D. Receipts can be merged into a single ledger entry

Answer: (A)

Traceability and accountability in handling payments are essential. Issuing a receipt for each payment creates a documented record of the transaction, capturing who paid, how much, and when. This makes it possible to reconcile payments with funds received and to audit or review transactions later. Having receipts accounted for periodically ensures every receipt is tracked, filed, and available for reference, so discrepancies can be spotted and resolved promptly. Requiring the person who receives the payment to sign confirms who handled the transaction and when, adding a layer of responsibility and preventing misplacement or misappropriation. Together, these practices establish a reliable, auditable system for receipts. Receipts being optional or discarded eliminates proof of payment; issuing receipts only at year-end misses most transactions and undermines reconciliation; merging receipts into a single ledger entry hides details and weakens accountability.