Receipt and Payment Account Vs Income and Expenditure Account

Receipt and payment account and income and expenditure account both are prepared in not-for profit organisations. Both are useful for preparing financial statement in these organisation. But both are different features. We can show the difference between receipt and payment account and income and expenditure account on the following basis.

Basis of Difference		Receipt and Payment A/c		Income and Expenditure A/c
1. Definition		Receipt and payment account is the account which is made just like cash book.		Income and expenditure account is the account which is made just like profit and loss account.
2. Nature of Account		It is current asset account		It is nominal account for matching of incomes and expenditures of not-for-profit organisation.
3. Debit and Credit Side		Debit Side of this account shows receipts and credit side of this account shows only payments.		Debit side of this account shows different incomes like donation and subscription fees etc. Credit side of this account shows all the expenses.
4. Capital and Revenue items		We record both capital and revenue item in it but it must be in cash or through bank.		We record only revenue items. All capital nature income and expenditure will not show in it.
5. Balance after closing of account		If we close this account, balance at closing account will show the cash at hand and at bank or bank overdraft.		If we close this account, balance of this account will show the surplus (net profit or deficiency (net loss)
6. Cash Basis and Accrual Basis		Receipt and payment account follows only cash basis of accounting.		Income and expenditure account follows only accrual basis of accounting. It means, whether we pay or receive  in cash or these are still credit, we records only current year income and expenditures. We do all the adjustments of outstanding income and expenditures and advance incomes and expenditures in this account.