Append below are the main differences/distinction between:
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Receipts & Payments Account |
Income & Expenditure Account |
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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 |
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Starts with the opening balance of cash in hand and at bank |
It has no opening balance |
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Only cash transactions takes place |
Other transactions also take place |
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Capital as well as revenue items appear |
Only revenue items appear |
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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 |
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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 |