| Difference | Receipts-Payments Account | Income-Expenditure Account |
| 1. Meaning | A summary of cash received and cash paid prepared by a non-trading concern is known as ‘Receipts-payments Account.’ | To know the result of a concern at the end of the year, the account which is prepared by a non-trading concern is known as ‘Income-Expenditure Account’. |
| 2. Nature | Receipts-Payments Account is similar to Cash Account. | Income-Expenditure Account is similar to Profit and Loss Account. |
| 3. Transactions | In Receipts-Payments Account only cash transactions are recorded. | In Income-Expenditure Account non-cash transactions are also recorded. |
| 4. Balance | This account starts with an opening cash balance and at the end of the year, the balance of the account shows the closing cash balance. | There is no opening balance of this account, but at the end of the year, there is a balance showing the ‘excess of incomes over expenses’ or the ‘excess of expenses over incomes.’ |
| 5. Sides show | The debit side of this account shows the incomes and the credit side shows the expenses. | The debit side of this account shows the expenses and the credit side shows the incomes. |
| 6. Receipts- Payments | The receipts and payments of both capital and revenue types are recorded in this account. | Only revenue receipts and revenue payments are recorded in this account. |
| 7. Time period | All cash transactions are included here irrespective of the time period. | Only transactions of income and expenditure only of current year are recorded in this account. |
| 8. Difference | The difference of both the sides of this account shows the closing balance. | The difference of both the sides of this account shows the excess of incomes or excess of expenses. |
| 9. Balance | This account generally shows a debit balance, but if there is bank overdraft, it shows a credit balance. | This account may have any balance, debit or credit. |
| 10. Accounting basis | This account is prepared on cash basis. | This account is prepared on mercantile basis. |
| 11. Treatment of transactions | Debit side receipts and credit side payments are recorded. | On debit side revenue expenses and on credit side revenue incomes are recorded. |
