Question

State any three points of difference between ‘Receipts and Payment Account’ and ‘Income and Expenditure Account’.

Answer 1

1. The Receipts and Payments Account is a summary of cash receipts and payments, whereas the Income and Expenditure Account is similar to a trade company's Profit and Loss Account.
2. The Account of Receipts and Payments is a real account, whereas the Account of Income and Expenditure is a nominal account.
3. The Receipts and Payments Account solely has cash items, whereas the Income and Expenditure Account has both cash and non-monetary items.