Question

Distinguish between ‘Receipts and Payments Account’ and ‘Income and Expenditure Account’ on the basis of ‘Depreciation’.​

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 prepared to show the net result of the operation during the period to derive surplus or deficit. ...

Answer 2

Answer:

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Explanation:

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