Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account?

— Kishore V, SME and ACW at Edumarz.

Important Characteristics 

1. It’s a synopsis of the cash book, for starters. 
2. It has the same appearance as a simple cash book (without the discount and bank columns) with debit and credit sides. 
3. Payments are entered on the credit side, while receipts are recorded on the debit side. 
4. It displays the total sums of all receipts and payments, regardless of the time period. 
5. For example, the entire subscriptions received during 2015–16, including monies relating to the years 2014–2015 and 2016–2017, are recorded in the Receipt and Payment account for the year ending March 31, 2016. Taxes paid in 2015–16, even if they apply to the years 2014–15 and 2016–17, are also included. 
6. It covers all inflows and payments, regardless of whether they are capital or income in origin. 
7. There is no distinction between cash and bank receipts/payments. This account shows the entire amount of each receipt and payment, with the exception of the opening and closing balances. 
8. There are no non-cash items in this account, such as depreciation, ongoing costs, accrued income, and so on. 
9. It starts with the beginning cash in hand and cash at bank (or bank overdraft) balances and ends with the closing cash in hand/ cash at bank (or bank overdraft) balances.     
10. In truth, unless there is a bank overdraft, the closing balance in this account (the difference between the total amount of receipts and payments), which is normally a negative balance, Cash in hand and cash in the bank are represented by the balance.