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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
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Solution
Income and Expenditure account is prepared to ascertain surplus or deficit at the end of an accounting year.
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RELATED QUESTIONS
Justify either for or against by giving a reason for the following statement. ‘Income and Expenditure account shows the opening and closing balances of cash in hand and cash at bank.’
Give any two uses of Income and Expenditure Account.
The closing balance of this account shows surplus/deficit ______.
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.
It contains only revenue items.
State any one point of difference between Receipt and Payment account and Income and Expenditure Account.
Mention any two features of the Income and Expenditure Account.
Distinguish between Receipt and Income.
