BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is the difference between income & expenditure accounts and receipts & payments accounts? Income & expenditure accounts are on an accruals basis, whereas receipts & payments accounts show only the cash and bank transactions in that accounting period.

Detailed explanation-2: -Receipt and payment account: The balance of the account is carried to the next period. Income and expenditure account: The balance of the account is not carried to the next period. Instead, it is added to or deducted from the accumulated amount.

Detailed explanation-3: -Incomes & expenses are nominal accounts. Hence Income & expenditure account is a nominal account.