DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : N. USHA RANI
Designation : Lecturer
Branch : Commercial & Computer Practice
(CCP)
Institute : GPW/Guntur
Year/Sem : III Sem
Sub-Code : CCP-302
Subject : ACCOUNTANCY-II
Topic : Non-Trading Concerns
Duration : 50 minutes
Sub Topic : Similarities between R&P and Cash Book
Teaching Aids : PPT ANIMATIONS
Objectives

On completion of this period , you would be

able to
 Understand the similarities between Receipts

and Payments Account and Cash Book

Recap:

In the previous lesson, you learnt the meaning of

Receipts and Payments A/c.

Receipts and Payments A/c is a summary of

cash/bank transactions for a year

contains all cash Receipts and Payments of both

capital and Revenue nature.
KNOWN TO UNKNOWN

1. What is Cash book?

2. How it is prepared
3. Distinguish between Receipts and Payments Account
and Cash Book
Similarities of Receipts and Payments A/c &
Cash Book:

1. Receipts and Payments A/c is prepared by Non-

Trading Concerns

Cash Book is prepared by both Trading Non-Trading

Concerns
2. Receipts and Payments A/c is a part of double entry
book keeping

Cash Book also is a part of double entry book keeping

(contd.,)

Similarities

3. Receipts and Payments A/c is a summary of

Cash
Book prepared for a certain period

Cash Book is a record of all cash transactions

4. Receipts and Payments A/c is divided into 2 sides
(Debit and Credit)

Cash Book is also divided into 2 sides

(Debit and Credit)

(contd.,)

Similarities
5. Receipts and Payments A/c – all cash receipts
appear on left hand side

Cash Book - -do-

6. Receipts and Payments A/c – all cash payments

appear on right hand side

Cash Book - -do-

(contd.,)

Similarities
7. Receipts and Payments A/c records all receipts &
payments of Revenue & Capital nature.
Cash Book -do-

8. Receipts and Payments A/c has only cash column.

Cash Book has two or three columns – to record
cash transactions, bank transactions and discount
(contd.,)

Similarities

9. Receipts and Payments A/c eliminates contra

entries by merging Cash & Bank items.
Cash Book enters contra transactions.

10. Receipts and Payments A/c begins with opening

balance of cash in hand and at Bank

Cash Book also begins with opening balance of cash

in hand and at Bank

(contd.,)

Similarities
11. Receipts and Payments A/c Debit balance shows
cash in hand & Bank

Cash Book debit balance shows actual cash in hand,

12. Receipts and Payments A/c credit balance shows

Bank Overdraft

Cash book credit balance also shows Bank Overdraft

Summary

 Receipts and Payments Account is similar to Cash

Book
 Receipts and Payments Account is a summary of a
Cash Book prepared for a certain period
 Whereas Cash Book is a record of all transactions
QUIZ
(1)In Non-Trading concerns,
summary of cash book is termed
as:
(a) Profit and Loss A/c
(b) Receipts and Payments A/c
(c) Balance sheet
(d) None of the above
 QUIZ CONTD.

(2) In Trading concerns cash book is prepared

to know the
(a) cash or bank balance on hand.
(b) value of goods.
(c) value of fixed Assets
(d) None of the above.
 QUIZ CONTD.

(3) Cash book with two columns is called

(a) Single column Cash Book

(b) Double column Cash Book
(c) Petty cash book
(d) None of the above
QUIZ CONTD.
(4) Receipts and Payments A/c includes all
expenses of Capital & Revenue nature
of past, present or future.
(a) True
(b) False
Frequently Asked Questions

• What is Receipts and Payments Account?

• Write any two similarities between ‘Cash Book’ and
‘Receipts and payments Account’