Question

Difference between income and expenditure and receipt and payment a/c

Answer 1

It is a summarized statement of all cash transactions during an accounting year. ... The whole amount of income or expenditure—whether received or paid in cash or not—is recorded in it.

The whole amount of income or expenditure—whether received or paid in cash or not—is recorded in it. Transactions involving cash receipts are recorded on Debit side and those involving cash payments are recorded on Credit side. ... Its balance is carried over to Receipts & Payments Account of the next year.