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.

Note:

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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