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Answer» Difference Between Receipts and Payment Account and Income and Expenditure Account. | S. No | Basis | Receipts 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 . | | 2. | Nature of Account | It is a Real Account. | It is a Nominal Account. | | 3. | Sides | The Left Hand Side is Receipts and the Right Hand Side is Payments . | 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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