Difference between “Receipts and Payment Account” and “Income and Expenditure Account”.

Receipts and Payments Account: 

1. Nature of Account: It is a real account.
2. Basic Structure: It is basically a summarized cash book.
3. Base: It is based on cash system.
4. Opening Balance: Opening Balance rep-resents cash or bank balance in the beginning of the accounting period.
5. Closing Balance: Closing Balance represents cash or bank balance at the end of the accounting period.
6. Items of Debit side: It is debited with all the sums received.
7. Items of Credit side: It is credited with all the sums paid out.
8. Non-cash items: Non-cash items are not recorded in this account.
9. Nature of items recorded revenue/capital: It records the receipts and payments whether of capital or revenue nature.
10. Period to which items relate: It records transactions of current year, previous year and subsequent years provided flow of cash is affected.
11. Treating of closing balance: Its Closing Balance is carried forward in the same account of the next period.

Income and Expenditure Account:

1. Nature of Account: It is a nominal account.
2. Basic Structure: It is like a Profit & Loss A/c.
3. Base: It is based on accrual system.
4. Opening Balance: It has no Opening Balance.
5. Closing Balance: Its Closing Balance rep-resents either net surplus or net deficit.
6. Items of Debit side: It is debited with the expenses and losses.
7. Items of Credit side: It is credited with the income.
8. Non-cash items: Non-cash items like depreciation and bad debts are shown.
9. Nature of items recorded revenue/capital: It records the incomes, expenditures and losses of revenue nature.
10. Period to which items relate: It records transactions pertaining to current year only.
11. Treating of closing balance: Its Closing Balance is transferred to the Capital Fund in the Balance Sheet.