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 |