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Question
How will Income and Expenditure account benefit a non-trading sports organisation?
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Solution
- The Income and Expenditure Account shows the surplus or deficit arising from the activities of a non-trading concern during a year.
- It shows all items of income and expenditure. With the help of this information, the organisation can take steps to increase income and reduce expenditure.
- It serves as the basis for preparing the Balance Sheet of a non-trading organisation.
- It fulfils the statutory requirements because non-trading organisations are legally required to prepare it.
RELATED QUESTIONS
Income and expenditure contain only ______ items.
______ depicts the capital fund of the organization.
The closing balance of this account shows surplus/deficit ______.
The closing balance of this Account shows surplus or deficit for the year.
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.
Why and by whom is an Income and Expenditure Account prepared?
State any one point of difference between Receipt and Payment account and Income and Expenditure Account.
What is Income and Expenditure Account?
Distinguish between Receipt and Income.
