What is the difference between Receipt & Payment Account
and Income & Expenditure Account?
- 9 Answers
- 42148 Views
- Accounting, Barclays, ICICI, Tarasons Communications, TATA, I also Faced
- E-Mail Answers
Answer Posted / yogita jadhav
Receipt and payment account is nothing but a cash account
which starts with opening balance of cash and all receipts
and payments whether capital or revenue or whether
pertaining to last year, current year, or next year are
recorded. The net result is the closing balance and the
balance is always debit since the payment side can not be
more that receipt side.
As against Income and Expenditure account only records
revenue expenditure whether paid or not and only pertaining
to current year.
The non cash expenses like depreciation are also recorded
in Income and Expenditure Account.
The resultant figure of Income and expenditure account is
either excess of income over expenditure or excess of
expenditure over income.
Thus the income and expenditure can have debit or credit
balance.
Receipt and payment account is prepared for all types of
organizations including profit making organizations.
The Income and Expenditure account is only prepared by Non-
profit making organization.
The resultant figure i.e.closing balance of Receipt and
payment account is shown as “Cash in hand”at the asset side
of balance sheet.
The resultant figure of Income and Expenditure account i.e
Excess of Income over Expenditure or Excess of expenditure
over income is added or subtracted from Capital Fund
respectively.
| Is This Answer Correct ? | 49 Yes | 13 No |
Post New Answer View All Answers
what is the main difference between nse & bse operations
i m a student of icwai i have just passed out my foundation and i wanna no if i should go for both intermediate group together or not....
Please send me full details of MIS report how to prepare which item to be consider in MIS report? 2) full details of Esic, PF and Fbt and maharashtra labour welfare fund
If i want to establish a company in which i want to manifacture and sell the Wine. So how many permissions i have to taken and who will issue those?
Is it correct to covered fesibility report expenses and survey expenses in pre-operative exepenses ?
How can we calculate the total income of the company.
Expand BEMS
what do u mean by single error and double error in accointing errors?
Took goods from the shop for use at home? state whether the following transcation is business transcation or non business transaction? with reason?.
what is meant by transposition error
Expand---------PSRT
types of inventory
Expand-------SNAT
what is Sums on Finalization of Accounts?
Debit Note & Credit Note?
