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Difference between Receipts and Payments Account and Cash Book

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Bothe receipts and payments account and cash book are prepared on the cash basis of accounting. Both records cash and bank transactions.

Despite few similarity they both have few differences.

In this lecture we would discuss few basic difference between receipts and payments account and cash book

Distinction between Receipts and Payments account and Cash Book

BasisReceipts and PaymentsCash Book
1. BasisIt is prepared from cash book in summarised fromIt is prepared on the basis of each cash receipt and cash payment transaction.
2. SidesIt has receipts and payments side. the left one is receipts and the right one is payment.It has debit and credit sides
3. PeriodIt is prepared at the end of accounting as a summarised form of the cash book.It is prepared on daily basis.
4. Ledger Folio ColumnIt has no Ledger Folio columnsIt has ledger Folio columns.
5. Part of Double Entry SystemIt is not part of a double-entry system. It is merely a summary of cash bookIt is prepared following double entry system of accounting.
6. InstitutionsIt is prepared by Not for profit organization (NPO)It is prepared by all organizations whether profit or non profit.

Further Reading:-

Difference between Income and Expenditure Account and Profit and Loss Account

Difference between Receipts and Payments Account and Income and Expenditure Account

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