The Basic features of Receipts and Payments Accounts are :
1. It is a summary of a simple cash book.
2. It shows the total amounts of all receipts and payments irrespective of the period to which they pertain.
3. It includes all receipts and payments whether they are of capital nature or of revenue nature.
4. No distinction is made in receipts/payments made in cash or through bank. With the exception of the opening and closing balances, the total amount of each receipts and payments is shown in this account.
5. No non-cash items such as depreciation outstanding expenses accrued income, etc. are shown in this account.
The basic features of Income and Expenditure Account are:
• It is a nominal account.
• It is prepared from the receipts and payments and other information.
• In this statement accruals of Receipts and Payments considered.
• The different treated as profit or deficit for the year.
