Question

Give one difference between Receipts and Payments Account and Cash Book.

Answer 1

S. No.	Basis of Distinction	Receipts and Payments Account	Cash Book
1.	Purpose	To facilitate preparation of Income and Expenditure Account and Balance sheet.	To provide a permanent record of all cash transaction and to know cash balance at the end.
2.	Preparing entity	It is prepared by non-trading organisations only.	It is prepared by both trading and non-trading organisations.