In a receipt and payment accounts, it is the summarized cashbook for any particular period of time. It begins with the opening balance of cash in hand and/or at the bank balance and so from here, we should debit all income received and credit all income paid out during the period.
These aspects of the above mentioned topic — receipt and payment and. as well income and expenditure are used by non trading organizations such as social clubs, societies etc. The main purpose of this aspect of account is to help them present their financial position of their members and not for profit making