1. DIFFERENCE BETWEEN RECEIPTS AND PAYMENTS ACCOUNT AND INCOME AND EXPENDITURE ACCOUNT
J.RAJEES Assistant Professor Department Of Commerce Computer Application St.Joseph’s College (Autonomous) Tiruchirappalli

2. DEFINITION Receipts and payments account is the account which is prepared like cash book whereas Income and expenditure account is the account which is prepared like profit and loss account to know the financial result for the given period

3. Format
The debit side of the receipts and payments account consists of the receipts and credit side consists of all payments of cash
Whereas
Debit side of the income and expenditure account includes the expenditures and credit side includes the incomes

4. Nature
Receipts and payments account is real or current asset account as it includes all the receipts during the year
whereas
Income and expenditure account is nominal account as it takes in to account the income and expenditures relevant to the concerned period.

5. Capital and revenue items
The income and expenditure account takes into both capital and revenue items irrespective of the nature, period and time
whereas
income and expenditure account takes into only the revenue items pertaining to the current financial year

6. Opening and closing balances
The receipts and payments account is just like cash account. Probably this account opens and closes with cash and bank balances which will be shown on the debit side at the beginning and at the end credit side of the account
whereas
Income and expenditure account does not have opening balance of cash or bank but it will be closed as, if the balance is on the debit side it indicates income is more than the expenditures therefore it will be noted as SURPLUS and if the balance is on the credit side it denotes the excess of expenditure over income therefore it will be referred as DEFICIT

7. Preparation of the accounts
The receipts and payments account is prepared by using the information available in the cash book maintained by the Non-Trading concern whose aim is to serve the society rather earning more profits
whereas
The income and expenditure account is prepared with the help of the receipts and payments accounts and other relevant information relevant to the accounting year

8. Relevancy with the accounting period
The receipts and payments account includes the cash receipts belonging to the present, past and future period
whereas
The income and expenditure account reflects the transactions relating to the current accounting period and other adjustments pertaining thereto.

9. Significance and uses
The receipts and payments account is not given much importance by the management this is to know the various inflows and outflows of cash in a year
Whereas
The income and expenditure account is a part of the final accounts of the concern which will be accompanied by the balance sheet of the Non- Trading concern.

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