Receipts and payments account is the summary of cash and bank transactions which helps in the preparation of income and expenditure account arid the balance sheet.
| Receipts and payments A/c |
Income and expenditure A/c |
| (i) It is a real account. |
(i) It is a nominal account. |
| (ii) It is prepared from the cash book. |
(ii) It is prepared from the receipts and payments and other information. |
| (iii) It is on the basis of actuals Receipts and Payments and not considered accruals. |
(iii) In this statement accruals of Receipts and Payments considered. |
| (iv) The different treated as cash balance or bank balance. |
(iv) The different treated as profit or deficit for the year. |
