| Receipts and payment A/c | Income & Expnediture A/c |
| 1. It is a real account | 1. It is a nominal account |
| 2. It is summary of cash book | 2. It is like a profit and loss A/c |
| 3. Its debit side shows receipts and credit side shows payments | 3. Debit side shows expenses and credit side shows income and gains |
| 4. It starts with an opening balance of cash/bank | 4. It does not start with cash/bank balance |
| 5. It records both revenue and capital items | 5. It records only revenue items. |
| 6. Adjustments are not made | 6. Adjustments are made |
| 7. Objective is to ascertain the balance of cash in hand or cash at bank | 7. Objective is for knowing surplus of deficit. |
| 8. Its closing balance | 8. Its balance is transferred to capital fund. |
| 9. Includes receipts and payments for current year, previous year and next year. | 9. Includes items relating to current year only. |
| 10. It is prepared on cash system | 10. It is prepared as mercantile system |
