Question

what is income and expenditure account?diffrence bewteen income and expenditure account and receipt and payment account?

Answer 1

Income and Expenditure Account- The objective of this account is to ascertain surplus or deficit during the year.It is like a Profit and loss Account. Revenue nature receipts and expenses are recorded in this account. Debit side records expenses and credit side records income.

Receipts and Payment Account-The objective of this account is to record all types of receipts and payments and to ascertain the difference between the two sides denoting cash and bank balance at the end. Debit side of this account records receipts and credit side records payments.