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Outline two advantages of an income and expenditure account as compared to a receipts and payments account.

      

Outline two advantages of an income and expenditure account as compared to a receipts and
payments account.

  

Answers


Kavungya
i) Income and expenditure account is not confined to cash transactions only, i.e. noncash
transactions are also included in it. While in receipts and payment only cash
transactions are recorded here.
ii) Income and expenditure account closing balance represents either surplus or
deficit. Credit balance indicates surplus, while debit balance indicates deficit.
While in receipts and payment does not show deficit or surplus it only shows
balance that is carried down to the following year opening balance.
Kavungya answered the question on May 16, 2019 at 13:52


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