Receipts & Payments Account

Income & Expenditure Account

Receipts are shown on debit side and payment shown on credit side

Expenses are shown on debit side and Incomes are shown on credit side

Starts with the opening balance of cash in hand and at bank

It has no opening balance

Only cash transactions takes place

Other transactions also take place

Capital as well as revenue items appear

Only revenue items appear

The difference of two sides is the cash in hand and at bank at the end of the periods

The difference between is either surplus or deficit for the period

All receipts and payments are shown irrespective of the year to which they relate

Only those expenses and incomes are shown which related to the period for which the account is prepared