Question

Difference between receipts and payments account and income and expenditure account..

PLSS ANSWER IT ASAP..​

Answer 1

Answer:

Receipt and payment account: It is a summary of cash transactions.

Income and expenditure account: It is another name of income and expenses summary as adopted in non-trading concern.

Commencement

Receipt and payment account: It must necessarily commence with the opening ba!ance of cash brought over from the preceding period if any.

Income and expenditure account: it does not commence with any balance.

Items include

Receipt and payment account: It may include receipts and payments pertaining to preceding or succeeding period

Income and expenditure account: lt must include only income and expense, belonging. to the period under review.

Capital and revenue items

Receipt and payment account: It includes both capital and revenue receipts & payment.

Income and expenditure account: It includes only income and expenditure of revenue nature.

Placing of items

Receipt and payment account: in receipt and payment account receipts are shown on the debit side and payments on the credit side.

Income and expenditure account: If it is prepared in account form all revenue incomes appear on the credit side and expenditure on the debit side.

Balance of account

Receipt and payment account: The difference between receipts and the payments represents the balance of cash in hand or at bank or bank overdraft at the closing date.

Income and expenditure account: The difference of Income and expenditure represents either surplus or deficit balance.

Outstanding items

Receipt and payment account: It restricts itself to cash transactions only and does not take into account any outstanding Income or expenditure

Income and expenditure account: It includes all incomes whether received or not and all expenses whether paid or not relating to the period under review.

Carrying of balance

Receipt and payment account: The balance of receipts and payments account is carried to the next period.

Income and expenditure account: The balance of income and expenditure account is not carried to the next period but is added in or deducted from the accumulated.

Balance sheet

Receipt and payment account: A receipts and payments account need not necessarily be accompanied by a balance sheet.

Income and expenditure account: An income and expenditure account must be accompanied by a balance sheet for the period concerned.

please mark as Brainliest and follo.w me

Answer 2

HERE IS URE ANSWER MATE:

Receipt and payment account: The difference between receipts and the payments represents the balance of cash in hand or at bank or bank overdraft at the closing date. Income and expenditure account: The difference of Income and expenditure represents either surplus or deficit balance.

Income is the revenue generated by a non-trading institution in a financial year, while expenditure denotes outgoing expenses incurred. These are the basis of an Income & Expenditure account, and their net balance calculated after a financial year ends indicates if there is surplus or deficit.

IF U FIND THIS USEFUL PLS MARK IT AS BRAINIEST...!❤️