Explanation:

- Receipts and Payments Account:

- This account is a summary of all cash transactions during a particular period.

- It records receipts on the debit side and payments on the credit side.

- Option 1: A Debit balance:

- Typically, this account can show a debit balance if the total receipts exceed the total payments.

- Option 2: A Credit balance:

- Uncommon in Receipts and Payments Account but possible if payments exceed receipts.

- Option 3: Surplus or Deficit:

- Not shown directly in this account. Surplus/Deficit is determined through an Income and Expenditure Account.

- Option 4: Capital Fund:

- This is irrelevant to a Receipts and Payments Account as it’s a balance sheet item.

Correct Answer: Option 1 – A Debit balance.