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Answer» Difference between Receipt and Payment Account and Income and Expenditure Account | Bases of Difference | Receipt and Payment Account | Income and Expenditure Account | | 1. Form | It is a summary of cash book. | It is a summary of profit and loss account. | | 3. Sides | Its left hand side is receipts and right hand side is payment | The left hand side is expenditure and the right hand side is income. | | 4: Balance | It starts with opening balance of cash and ends as showing closing balance of cash | It does not start with opening balance of cash and does not show closing balance of cash. | | 5. Capital and revenue items | It records receipts and payments of both capital and revenue nature | It records income and expenditure of revenue nature only | | 6. Amount | It records all the cash receipts and payments, whether relating to current year or previous year | It records all income and expenditure of the current year on accrual basis. |
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