WAEC Accounting 2022 Theory — Question 9

Model answer

- A receipts and payments account records only cash transactions, while an income and expenditure account deals with both cash and credit (accrual) items. - A receipts and payments account records receipts on the debit side and payments on the credit side, while income and expenditure records income on the credit side and expenditure on the debit side. - Receipts and payments account is prepared on a cash basis, while income and expenditure account is prepared on an accrual basis.