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