Question

DISTINCTION BETWEEN RECEIPT & PAYMENT ACCOUNT VS INCOME AND EXPENDITURE ACCOUNT

Answer 1

Explanation:

Income & expenditure accounts are on an accruals basis, whereas receipts & payments accounts show only the cash and bank transactions in that accounting period.

Answer 2

Receipt and payment account: The balance of the account is carried to the next period. Income and expenditure account: The balance of the account is not carried to the next period. Instead, it is added to or deducted from the accumulated amount.