Advertisements
Advertisements
Question
______ account is prepared to ascertain surplus or deficit at the end of an accounting year.
Options
Income and Expenditure
Balance sheet
Profit and Loss
Receipts and Payment
Advertisements
Solution
Income and Expenditure account is prepared to ascertain surplus or deficit at the end of an accounting year.
APPEARS IN
RELATED QUESTIONS
Income and Expenditure Account is a ______ account.
Give any two uses of Income and Expenditure Account.
How will Income and Expenditure account benefit a non-trading sports organisation?
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.
The closing balance of this Account shows surplus or deficit for the year.
It serves as the basis for preparing the Balance Sheet of a non-trading organisation.
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'.
Why and by whom is an Income and Expenditure Account prepared?
All donations received by non-trading concerns are entered in the liabilities side of the balance sheet. Justify either for or against.
Distinguish between Receipt and Income.
