The difference between income and expenditure account and profit and loss account are

Basis	Income and Expenditure Account	Profit and Loss Account
Preparation	Income and Expenditure account is prepared by non-profit organisation.	Profit and loss account is prepared by organization whose main objective is to earn profit
Basis of preparation	It is prepared on the basis of receipts and payments account.	It is prepared on the basis of trial balance and additional information
Objective	Its main objective is to ascertain surplus or deficit	Its main objective is to ascertain net profit or loss
Balance	The balance in this account is either surplus or deficit	The balance in this account is either net profit or net loss.

Income and expenditure account is prepared by a non-profit organization and is a summary of income and expenditure of the accounting year.
Income and expenditure account is akin to profit and loss account because of the following similarities
which are observed amongst these accounts.
(i) Both are nominal accounts.
(ii) Both are one prepared on accrual basis.
(iii) Both record revenue items related to current accounting year only.
(iv) In both the accounts, expenses and losses are recorded on the debit side and incomes and gains
are recorded on the credit side

It is so because receipts and payments account is prepared on cash basis of accounting

No, as the balance in receipt and payments account is closing cash and bank balance

(i) These are the amount received by not-for-profit organizations as a gift. It may be a general donation or specific donation.
(ii) General donation: If the donation is received without any specific condition, then it is a general donation. It is a revenue receipt.
(iii) Specific donation: If the donation received with a specific condition particular purpose like donations for sports fund, prize fund, etc., It is known as a specific donation. It is a capital receipt.

Following are the steps involved in the preparation of receipts and payments accounts:
(i) Record the opening balance of cash in hand and favourable bank balance on the debit side of receipts and payments account. If there is a bank overdraft, it must be recorded on the credit side
(ii) Actual cash receipts during the year are recorded on the debit side and actual cash payments during the year are recorded on the credit side.
(iii) While recording cash-receipts and payments, no distinction needs to be made between revenue and capital items.
(iv) If the total of the debit side is more than the credit side, the balancing figure will appear on the credit side. It represents the closing balance of cash or bank.
(v) If the total of the credit side is more than the debit side, the balancing figure will appear on the debit side. It represents bank overdraft.

Following are the features of not-for-profit organizations.
(i) Not-for-profit organizations are the organizations which function without any profit motive.
(ii) Their main aim is to provide service to a specific group or the public act large.
(iii) Generally, they do not undertake business or trading activities.
(iv) Their main sources of income include subscription from members, donations, grant-in-aid and legacies

Dr Income and Expenditure Account for the year ended 31 December, 2018 Cr

Expenditure	Rs	Income	Rs	Rs
		By Subscription received
		during the year	50,000
		Less: Subscription received for
		2017	5000
			45,000
		Less: Subscription received for 2019	7,000
			38,000
		Add: Subscription due for 2018	6,000
			44,000
		Add: Received in advance in
		2017 for 2018	4,000	48,000

i. Subscription
ii. Interest on investment
iii. Interest as fixed deposit
iv. Sale of old sports material
v. Sale of old newspaper.

i. Life membership fees
ii. Legacies
iii. Specific donation
iv. Sale of fixed asset
v. Special funds
vi. Prize fund
vii. Tournament fund.

(i) Receipts and Payments account is a summary of cash and bank transactions of not-for-profit organisations prepared at the end of each financial year.
(ii) It is a real account in nature. The receipts and payments account begins with the opening balances of cash and bank and ends with closing balances of cash and bank

Dr. Income and Expenditure Account for the year ended 31^st March, 2019 Cr.

Expenditure	Rs.	Rs.	Income	Rs.
To Sports materials consumed:			By Sale of old sports materials	500
Opening stock	3,000
Add: Purchased in the current year	9,000
	12,000
Less: Closing stock	4,000	8,000

Balance sheet as on 31^st March, 2019

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
			Stock of sports materials		4,000

Dr. Income and Expenditure Account for the year ended 31^st March, 2017 Cr Expenditure Rs. Income Rs. Rs.     By Subscription 60,000       Add: Outstanding subscription for 2016-17 2,400       Subscription received in advance in         in advance in 1,000 63,400           Tutorial note
(i) Subscription for the year 2015-16 Rs. 7,500 and for the year 2017-18 Rs. 1,500 do not relate to the current year. So they should not be recorded in Income and Expenditure Account.
(ii) Subscription outstanding for the current year 2016-17 is Rs. 2,400. It should be added with the amount of subscription received during 2016-17.

Balance sheet as on 31'1 March, 2019

Liabilities	Rs	Rs	Assets
Capital fund		80,000	Sports equipment	30,000
(Balancing figure)			Computer	25,000
Subscription received in			Subscription outstanding	5,000
advance		8,000	Prize fund investments	10,000
Prize fund		10,000	Cash in hand	7,000
			Cash at bank	21,000
		98,000		98,000

Calculation of income from subscription for the year 2018

Particulars	Rs.	Rs.
Subscription received during the year 2018		1,50,000
Add: Subscription received for 2018 in 2017	3,000
Subscription outstanding for 2018	7,000	10,000
		1,60,000
Less: Subscription outstanding in 2017	10,000
Subscription received in advance in 2018	5,000	15,000
Income from subscription for the year 2018		1,45,000