Commercial Applications
State any one point of difference between Receipt and Payment account and Income and Expenditure Account.
Accounting
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Answer
| Basis | Receipts and Payments Account | Income and Expenditure Account |
|---|---|---|
| Type of Account | It is a real account that records cash receipts and cash payments, following the rule "debit what comes in, credit what goes out." | It is a nominal account that records incomes and expenses, following the rule "debit all expenses and losses, credit all incomes and gains." |
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