Question

Mention any THREE Distinctions between Receipts and Payments Account and Income and Expenditure Account.

Answer 1

Difference Between Receipts and Payment Account and Income and Expenditure Account.

S. No	Basis	Receipts and Payment Account	Income and Expenditure Account
1.	Form	It is a Summary of Cash Book.	It is a Summary of Profit and Loss Account .
2.	Nature of Account	It is a Real Account.	It is a Nominal Account.
3.	Sides	The Left Hand Side is Receipts and the Right Hand Side is Payments .	The Left Hand Side is Expenditure and the Right Hand Side is Income .
4.	Balance	It Starts with Opening Balance of Cash and Ends as Showing Closing Balance of Cash.	It does Not Start with Opening Balance of Cash and does Not Show Closing Balance of Cash.
5.	Capital and Revenue Items	It Records Receipts and Payments of Both Capital and Revenue Nature.	It Records Income and Expenditure of Revenue Nature only.
6.	Amount	It Records All the Cash Receipts and Payments , whether Relating to Current Year or Previous Year.	It Records All Income and Expenditure of the Current Year on Accrual Basis.