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प्रश्न
Why and by whom is an Income and Expenditure Account prepared?
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उत्तर
- Non-trading organizations, such as non-profits, clubs, and societies, create an Income and Expenditure Account to record their financial success over a given time period.
- By summarizing their income and expenses, these organizations can determine whether they have a surplus or deficit, providing details about their financial health and overall efficiency.
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संबंधित प्रश्न
State any three points of difference between ‘Receipts and Payment Account’ and ‘Income and Expenditure Account’.
______ depicts the Capital fund of the organization.
The closing balance of this account shows surplus/deficit ______.
Explain any two features of Income and Expenditure account.
How is Receipts & Payments Account different from Income & Expenditure Account?
It is a summary of all incomes and expenses of the current accounting year. It is prepared to know the surplus or deficit during the accounting year.
It contains only revenue items.
If the total of ______ side is greater than the total of ______ side, it is called 'surplus' or 'excess of income over expenditure'.
On the other hand, if the total of ______ side is greater than the total of ______ side, it is known as 'deficit' or 'excess of expenditure over income'.
Mention any two features of the Income and Expenditure Account.
