What are the different between income and expenditure account and receipt and payment account

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Solution

Dear Student,
Hereunder is the difference between the two :-

BASIS Receipt & Payment A/c Income & Expenditure A/c

Nature It is classified summary of cash transactions.(Real Account) It is like Profit & Loss Account.(Nominal Account)

Form Debit side records Receipts and Credit side records Payaments. Debit side records expenses and Credit side records incomes.

Contents It shows all receipt and payment, whether they relate to past, present or next year. It shows income and expenditure of current year only.

Adjustments It contains no adjustments. Cash basis of accounting. It contains adjustments as it is based on accrual system of accounting.

Depreciation It do not include depreciation. It includes depreciation.

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BASIS	Receipt & Payment A/c	Income & Expenditure A/c
Nature	It is classified summary of cash transactions.(Real Account)	It is like Profit & Loss Account.(Nominal Account)
Form	Debit side records Receipts and Credit side records Payaments.	Debit side records expenses and Credit side records incomes.
Contents	It shows all receipt and payment, whether they relate to past, present or next year.	It shows income and expenditure of current year only.
Adjustments	It contains no adjustments. Cash basis of accounting.	It contains adjustments as it is based on accrual system of accounting.
Depreciation	It do not include depreciation.	It includes depreciation.