Receipts & Payment Account
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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. |
