Question

Difference between receipt and payment account and income and expenditure account

Answer 1

Answer:

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Receipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account. ... Receipts and payments account contains only cash and bank transactions.

Answer 2

Difference Between Income & Expenditure account And Receipt & Payments account :

• Nature :

R & P ac -

It is the summary of the cash book.

I & E ac -

It is like as profit and loss Account.

• Nature Of items :

R & P ac -

It records receipts and payments of revenue and capital nature.

I & E ac -

It records income and expenditure of revenue nature only.

• Debit side :

R & P ac -

Debit side records receipts.

I & E ac -

Debit side records expenses and losses.

• Credit Side :

R & P ac -

Credit side records payments.

I & E ac -

Credit sides records income and gains.

• Depreciation :

R & P ac -

Does not includes Depreciation.

I & E ac -

Includes Depreciation.

• Opening Balance :

R & P ac -

Balance in beginning represents cash in hand or at bank

I & E ac -

There is no opening Balance.

• Closing Balance :

R & P ac -

Balance at end represents as Cash in hand and bank balance.

I & E ac -

Balance at end represents surplus or deficit.