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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
Income and expenditure contain only ______ items.
______ depicts the Capital fund of the organization.
Explain any two features of Income and 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.
This account is equivalent to the Profit and Loss Account of a business concern.
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'.
Explain the term surplus in Income and Expenditure Account.
Explain the term deficit in Income and Expenditure Account.
All donations received by non-trading concerns are entered in the liabilities side of the balance sheet. Justify either for or against.
