Railway Accounts Department Examinations

Showing posts with label Income & Expenditure A/c. Show all posts
Showing posts with label Income & Expenditure A/c. Show all posts

Tuesday, April 20, 2021

Differences between Receipts & Payments Account and Income & Expenditure Account

 

Differences between Receipts & Payments Account and Income & Expenditure Account

                                                                                                                                                         (1996 – 10 Marks)  

SN

Basis

Receipts & Payments A/c

Income & Expenditure A/c

1

Nature

It is a Statement (emerged from Cash Book summary), not an account emerged out of Double Entry system.

It is an Account emerged out of Double Entry system

2

Similar to

Cash Book / Cash Account

Profit & Loss Account

3

Basis

Cash Basis

Mercantile / Accrual

4

Period

Previous years, Current year & Next year

Current year only

5

Outstanding / Prepaid  Expenses & Incomes

Not considered

Considered

6

Accounts

All Three accounts such as, Personal Account, Real Account & Nominal Account

Nominal Account only

7

Revenue & Capital

Revenue and Capital transactions

Revenue transactions nly

8

Transactions

Cash transactions only

Cash & Non Cash transactions

9

Starts with & Ends with

Opening balance and Closing Balance of Cash on Hand & Cash at Bank

There is no Opening balance and Closing Balance

10

Debit side

Receipts

Expenditure

11

Credit side

Payments

Income

12

Difference between two sides represents

Closing balance of Cash at Hand and Cash in Bank ( Debit balance or Overdraft balance)

Surplus or Deficit

13

Accompanied  by

Nothing

Balance Sheet