The income and expenditure account differs from receipts and payments account because it
- accounts for notional charges
-
records transactions that relate to the period on cash basis
- records transactions that relate to the period on accrual basis
- accounts for balance of cash at bank
The correct answer is: B
Explanation
Receipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account.