Differences between Receipts & Payments Account and Income & Expenditure Account

 

Differences between Receipts & Payments Account and Income & Expenditure Account

                                                                                                                                                         (1996 – 10 Marks)  

SN	Basis	Receipts & Payments A/c	Income & Expenditure A/c
1	Nature	It is a Statement (emerged from Cash Book summary), not an account emerged out of Double Entry system.	It is an Account emerged out of Double Entry system
2	Similar to	Cash Book / Cash Account	Profit & Loss Account
3	Basis	Cash Basis	Mercantile / Accrual
4	Period	Previous years, Current year & Next year	Current year only
5	Outstanding / Prepaid  Expenses & Incomes	Not considered	Considered
6	Accounts	All Three accounts such as, Personal Account, Real Account & Nominal Account	Nominal Account only
7	Revenue & Capital	Revenue and Capital transactions	Revenue transactions nly
8	Transactions	Cash transactions only	Cash & Non Cash transactions
9	Starts with & Ends with	Opening balance and Closing Balance of Cash on Hand & Cash at Bank	There is no Opening balance and Closing Balance
10	Debit side	Receipts	Expenditure
11	Credit side	Payments	Income
12	Difference between two sides represents	Closing balance of Cash at Hand and Cash in Bank ( Debit balance or Overdraft balance)	Surplus or Deficit
13	Accompanied  by	Nothing	Balance Sheet