The similarities between Receipts and payments and income and expenditure account is

The similarities between Receipts and payments and income and expenditure account is

  • A.
    Both accounts follows the principle of double entry
  • B.
    They are summaries of financial statements
  • C.
    Both include capital items
  • D.
    Both are prepared by non-profit making concern
Correct Answer: Option C
Explanation

The receipts and payment accounts include both capital and revenue items while income and expenditure account include only revenue items.

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