Question

Difference between income and expenditure account and receipt and payment account

Answer 1

Answer:

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      Receipts & payment A/C                               Income &expenditure A/C

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1.  It is a summary of cash book                  1.  It is a revenue a/c (p&l a/c)

2. It starts and closes wit cash and             2. It does not start with any

bank balance.                                                     balance as it is revenue a/c

3. It contain both capital ad revenue          3. It contains only revenue item.                                                                      item.

4. It is not followed by a balance                 4. It is followed by a balance sheet .                                                                    sheet.    

5. It discloses the closing cash/ Bank         5. It discloses surplus/ deficit

balance.                                                                 which is transferred to                                          

                                                                                capital a/c.

6. It shows receipts on debit side and            6. It shows income on credit

payments on credit side.                                       side and expenses on debit

                                                                                 side.