The main difference between the two aspects
| Receipt & Payments | Income & Expenditure |
|---|---|
| (i) It includes capital receipt and capital payments. | (i) it excludes capital receipts and capital payments |
| (ii) It deals mainly on cash transactions of business. | (ii) it includes accounts and prepayments |
| (iii) Balance represents cash in hand, bank balance or of bank overdraft. | (iii) Balance represents surplus or deficit of income over expenditure for a particular period of time |