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Question
State whether the following statement is True or False.
There is no difference between Receipts and Payment Account and Income and Expenditure Account.
Options
True
False
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Solution
False
Explanation: Similar to a Profit & Loss Account, Income and Expenditure Account is prepared to ascertain the surplus/deficit of a concern during the accounting year, whereas Receipts and Payments Account is a summary of the cash book. Income and Expenditure Account is a nominal account that records all revenue expenses and all revenue incomes, while Receipts and Payment Account is a real account that records receipts and payments of capital and revenue nature.
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