The following are the five distinctions between a receipts and payments account and an income and expenditure account:

(i) Purpose: A receipts and payments account is used to track the inflow and outflow of cash for a period of time, while an income and expenditure account is used to track the income and expenditure of an organization over a period of time.

(ii) Scope: A receipts and payments account is typically a summary of all cash transactions, including both revenue and capital transactions, while an income and expenditure account is focused on the revenue transactions of an organization.

(iii) Format: A receipts and payments account is usually presented in the form of a T-account, with receipts on the left side and payments on the right side. An income and expenditure account is usually presented in the form of a traditional income statement, with income at the top and expenditure at the bottom.

(iv) Information provided: A receipts and payments account provides information about the inflow and outflow of cash for a specific period of time, while an income and expenditure account provides information about the net income or loss earned by an organization over a period of time.

(v) Use: A receipts and payments account is typically used by small organizations or non-profit organizations to track their financial transactions, while an income and expenditure account is typically used by larger organizations or businesses to track their revenue and expenditure.