Distinguish between 'Income and Expenditure Account' and 'Receipts and Payments Account' on the basis of the following : (a) Nature of Items (b) Closing Balance

Basis Receipts and Payments Income and Accounts Expenditure Accounts Nature of Items Records receipts and payments Records Income and of both Capital and Revenue expenditure of only Nature. Revenue nature. Closing balance Closing balance is Cash in Closing balance is hand/ Cash at bank/ Bank Surplus i.e. excess of overdraft at the end of the year. Income over expenditure or Vice Versa.