Difference Between Receipts and Payments Account and Income and Expenditure Account

Learning Objectives:

1. What is the difference between receipt and payment account and income and expenditure account?

Receipts & Payment Account		Income & Expenditure Account
1	It is a summary of the cash book	1	It takes the place of profit and loss account in non-trading concerns.
2	It begins with an opening balance and ends with a closing balance.	2	Does not commence with any balance
3	It records all sums received and paid whether they relate to revenue or capital items	3	It includes revenue items only
4	It include all sums actually received during the year whether they relate to the past, current or next year.	4	It includes the items relating to year for which it is prepared. Provision is made for all outstanding expenses and accrued income.
5	The receipts are shown on the debit side and the payments on the credit side.	5	Income is shown on the credit side and expenses on the debit side.
6	It simply ends with a closing balance of cash and does not show the result for the period.	6	It definitely shows whether there has been an excess of income over expenditures or vice versa.
7	It is not accompanied by a balance sheet.	7	It is always accompanied by a balance sheet.