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Question
State any three points of difference between ‘Receipts and Payment Account’ and ‘Income and Expenditure Account’.
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Solution
- 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.
- The Account of Receipts and Payments is a real account, whereas the Account of Income and Expenditure is a nominal account.
- The Receipts and Payments Account solely has cash items, whereas the Income and Expenditure Account has both cash and non-monetary items.
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RELATED QUESTIONS
Income and expenditure contain only ______ items.
The closing balance of this account shows surplus/deficit ______.
Explain any two features of Income and Expenditure account.
This account is equivalent to the Profit and Loss Account of a business concern.
It contains only revenue items.
If the total of ______ side is greater than the total of ______ side, it is called 'surplus' or 'excess of income over expenditure'.
Why and by whom is an Income and Expenditure Account prepared?
State any one point of difference between Receipt and Payment account and Income and Expenditure Account.
Mention any two features of the Income and Expenditure Account.
Give five differences between Profit and Loss Account and Income and Expenditure Account.
