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Home Accounts of Non-profit Making Organizations Difference Between Cash Book and Receipt and Payment Account

Difference between Cash Book and Receipt and Payment Account:

Following are the points of difference between cash book and receipt and payment account.

  Cash Book   Receipts and Payments Account
1 It is a book of account within the double entry system. 1 It is an account outside the double entry system.
2 Each transaction is recorded here separately in chronological (according to date) order. 2 Each transaction is not recorded separately - all the transactions are recorded at a time at the end of accounting year in a classified from.
3 Each entry is followed by narration 3 No narration is written here.
4 Ledger reference is recorded here 4 No ledger reference is recorded
5 Daily cash balance can be ascertained from this book. 5 Daily cash balance cannot be ascertained.
6 All concerns (non-profit seeking and profit seeking) organizations prepare it. 6 Only non-profit seeking organizations prepare it.
7 Whenever a cash transaction takes place, it is recorded in this book. In other words, it is a current account. 7 It is prepared on the last day of the year. In other words, it is a periodical account.
8 It is a must. 8 It is not indispensable - it may not be prepared.


Cash balance at the year-end can be ascertained from both the accounts. It hardly needs any mention that the balance of the two accounts will always be equal.

Relevant Articles:

Definition and Explanation of No-profit Organizations
Receipts and Payments Account
Difference Between Cash Book and Receipt and Payment Account
Income and Expenditure Account
Peculiar Items of A Non-profit Seeking Concerns
Difference between Receipt and Payment Account and Income and Expenditure Account




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