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  1. This answer was edited.

    First, let me help you interpret the difference between Receipts & Income along with the help of an example. Difference between Income & Receipts  Income Receipts Income refers to the amount received by an entity from its core business operations and day to day functioning. Any cash inflow rRead more

    First, let me help you interpret the difference between Receipts & Income along with the help of an example.

    Difference between Income & Receipts 

    Income Receipts
    Income refers to the amount received by an entity from its core business operations and day to day functioning. Any cash inflow received by an entity can be termed as receipts.
    All incomes affect the statement of profit & loss. But all receipts do not affect profit & loss statement.
    Income includes only revenue receipts.

     

    Receipts include both capital receipts & revenue receipts.
    It can be cash or non-cash in nature. For eg. non-cash items such as an unrealized gain from investments, profit on revaluation of fixed assets are also considered as income. It is only cash in nature.

    Examples of Receipts & Income

    For instance, XYZ Inc. receives the following amount in the month of January 20×1. Let us differentiate the following transactions as receipts or income.

    1. Borrowed 50,000 from a bank for establishing a new unit.
    2. Amount of 10,000 received from the disposal of an old machine.
    3. Amount of 600,000 received from the issue of new shares & debentures of XYZ Inc.
    4. 500,000 received as consideration for the sale of goods or services.
    5. Rent received 60,000 from the tenant.
    6. Interest & Dividend received 15,000 from investments in Amazon Inc.

    All the above examples can be termed as receipts but all of them cannot be termed as income. Only examples 4, 5, & 6 can be referred to as income for XYZ Inc.

    Eg. 1, 2, & 3 are capital receipts and will not affect the statement of profit & loss of XYZ Inc. Therefore they are termed only as receipts & not income.

    Whereas eg. 4, 5, & 6 are revenue receipts and will affect the profit & loss statement. Therefore, they can be referred to as income for XYZ Inc.

    Now moving forward, let me help you understand the difference between payments & expenditure, with the help of an example.

    Difference between Payments & Expenditure

    Expenditure Payments
    Expenditure refers to the amount incurred by an entity for operating the business and for earning income. Any cash outflow incurred by an entity can be termed as payments.
    All expenses affect the statement of profit & loss. But all payments do not affect profit & loss statement.
    Expenditure includes only revenue expenditure.

     

    Payments include both capital expenditure & revenue expenditure.
    It can be cash or non-cash in nature. For eg. non-cash items such as depreciation, amortization, bad debts are also considered expenses. It is only cash in nature.

    Examples of Payments & Expenditure

    For instance, ABC Inc. incurs the following payments in the month of January 20×1. Let us differentiate these transactions as payments or expenditures.

    1. Paid 40,000 for the acquisition of new machinery.
    2. Paid 200,000 for the redemption of shares and debentures issued by ABC Inc.
    3. Repaid 45,000 amount of loan taken from the financial institution.
    4. Salary & Wages paid 100,000.
    5. Purchase of Raw materials 30,000.
    6. Professional fees paid 15,000.

    All the above examples can be referred to as payments by ABC Inc. but all of them cannot be termed as expenditures. Only examples 4, 5, & 6 can be referred to as expenditures for ABC Inc.

    Eg. 1, 2, & 3 are capital expenditures and will not affect the statement of profit & loss of ABC Inc. Therefore they are termed only as payments and not expenditures.

    Whereas eg. 4, 5, & 6 are revenue expenditures and will affect the profit & loss statement. Therefore, they can be referred to as expenditure for ABC Inc.

    Conclusion

    1. All cash incomes are receipts. But all cash receipts are not income.
    2. All cash expenditures are payments. But all cash payments are not expenditure.

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  1. This answer was edited.

    No, Invoice is not a receipt.  To make the concept easy and understandable I would like to first explain the meaning of Invoice and Receipt followed by an example each and Key differences between them. I would like to conclude my answer with a snippet of Invoice and Receipt. Meaning of Invoice- InvoRead more

    No, Invoice is not a receipt.  To make the concept easy and understandable I would like to first explain the meaning of Invoice and Receipt followed by an example each and Key differences between them. I would like to conclude my answer with a snippet of Invoice and Receipt.

    Meaning of Invoice-

    Invoice refers to a legal document issued by the person who is selling the goods and services to the person who is purchasing/buying these goods and services. An Invoice is issued to make payment. The person who sells goods and services is called a seller (or) vendor and the person who buys goods and services is called customer (or) buyer.

    Example- When we purchase any product from the online store (or) perform online shopping, then the seller of the goods (or) service provides an invoice to the customer thereby allowing the customer to make payment after the delivery of the goods.

    Meaning of Receipt-

    Receipt refers to the acknowledgement of payment which states that seller (or) vendor of goods and services has received payment from the customer (or) buyer of goods and services. It is conclusive proof that payment has been made by the customer. In the case of transmission of goods, it acts as proof of ownership. It is also a legal document similar to an invoice.

    Example- When you go to a grocery store (or) supermarket for purchasing various products, after making the payment the staff member gives you an acknowledgement. Thus this acknowledgement is known as a receipt.

    Key Differences between Invoice and Receipt-

    The following are the major key difference between receipt and invoice

    Sno. Point of Difference Invoice Receipt
    1. Meaning Invoice refers to the request for payment. Receipt refers to acknowledgement (or) proof of payment.
    2. Issue An Invoice is issued before the payment is made. A receipt is issued after the payment is made.
    3. Amount An invoice displays the total amount which is due (or) to be paid. A receipt shows the detailed amount which is already paid by the buyer.
    4. Payment At the time of making payment, the invoice is given to the customer. A receipt may be given to the customer (or) the third party after making the payment as proof.
    5. Usage An invoice is used to keep a record of goods and services sold to the customer. A receipt is used as an acknowledgement that the payment of goods and services is made.
    6. Benefits I) It helps in the delivery of goods by keeping a track of goods.

    II) It helps in predicting future sales.

    III)  It helps in providing better customer service.

    IV) It helps the customers to grab amazing offers and discounts for early payment.

    I) It helps at the time of exchange or return of faulty goods.

    II) It is generated digitally which saves paper and time.

    III) It reduces the stress at the time of making tax payment.

     

    I would like to add a snippet of invoice and receipt for clear and better understanding

                                                                 Invoice

    Sample Invoice

                                                               Receipt

    Cash receipt of ABC Ltd is shown below

    Cash Receipt

     

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