Question

Distinguish between Income and Expenditure Account and Receipts and
Payments Acount on the basis of Closing Balance
Manu and Kanu were partners in a firm, ahiring profits and losses in the
ratio of 2 : 3. Their foued capitals were 10,00,000 and 5,00,000,
respectively. They were entitled to an interest on capital @ 10% pa. The
firm earned a profit of 60,000 during the year. The amount of interest
on capital credited to Kanu will be:
(A) + 20.000
40.000
36,000
(D) 24,000​

Answer 1

Explanation:

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

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above amswer by @vanunagar13 is absolutely correct