Difference between receipt and payment account and cash book
- Difference between receipt and payment account and income and expenditure account
- Receipt and Payment Account
- Difference between Cash Book and Receipt and Payment Account:
- Difference between Receipts and Payments Account and Cash Book
Difference between receipt and payment account and income and expenditure account
Format of a Receipts and Payments Accountand your how what what is the biggest county in the us how to get a copy of your w2 online best value hotels in union square san francisco
A receipts and payments account is a summary of actual cash receipts and payments extracted from the cash book over a certain period. All cash received and paid during the period whether capital or revenue is included in this account. All the receipts are grouped under main headings such as entrance fees, annual subscription, life membership subscription, donations, interest and sundry receipts. All the payments are entered on the credit side, under main headings such as Salaries and Wages, Printing and Stationary, Rent, Rates and Taxes, Office expenses etc. The receipts and payments account commences with the opening balance of cash and similarly closes with the balance of cash at the end of the period. As it is a mere summary of cash transactions, it does not include any income or expenditure outstanding and naturally fails to reveal the actual income or expenditure of the period it covers. In receipts and payment account there is a receipts column on the debit side which is used to record all receipts and a payment column on credit side which is used to record all payments made by a non-trading concern or non-profit-making organizations during a specific accounting period usually one year.
Non-profit organizations prepare receipt and payment account at the end of the year. With the help of this account and some additional information, we prepare income and expenditure account to disclose the true results of non-profit organizations. Receipt and payment account cannot disclose the true result of a non-profit organization. We prepare this account on the basis of the information available from the cash book. As we know, we prepare Receipts and payment account with all the cash receipts and cash payments for the whole year. We determine the net result of cash receipts and cash payments of a fixed time through this account.
The following are the main differences between receipts and payments account and income and expenditure account: 1. Nature Receipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account. Objective Receipts and payments account is prepared to show cash and bank receipts and payments during the period to derive closing balance of cash and bank. Income and expenditure account is prepared to show the net result of the operation during the period to derive surplus or deficit. Recording All cash and cheque receipts are recorded on debit side of receipts and payments account where as all cash and bank payments are recorded on credit side. In income and expenditure account all expenditure of revenue nature are recorded on debit side and all incomes of revenue nature are recorded on credit side.
Receipt and Payment Account
In business, the transaction may occur in two ways, i. For recording cash transaction, there are separate books or accounts are maintained by the business entities, which are cash book and cash account. Cash Book is a subsidiary book, which records all the cash related transactions, i.
Difference between Cash Book and Receipt and Payment Account:
The main points of difference between receipt and payment account and Income and expenditure account may be described as under:. Receipt and payment account: It is a summary of cash transactions. Receipt and payment account: It must necessarily commence with the opening ba! Income and expenditure account: It includes only income and expenditure of revenue nature. Income and expenditure account: If it is prepared in account form all revenue incomes appear on the credit side and expenditure on the debit side. Receipt and payment account: The difference between receipts and the payments represents the balance of cash in hand or at bank or bank overdraft at the closing date. Receipt and payment account: It restricts itself to cash transactions only and does not take into account any outstanding Income or expenditure Income and expenditure account: It includes all incomes whether received or not and all expenses whether paid or not relating to the period under review.
Difference between Receipts and Payments Account and Cash Book