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
DBoth are prepared by non-profit making concern
Answer is C
The receipts and payments account summarizes receipts and payments made by a non-trading concern during a particular period of time (usually one year). Its is used to prepare income and expenditure account of non-trading concerns.
