Question

Income and expenditure account records ______.

Options

• Receipts and Payments of Revenue and Capital nature both.

• Income and Expenditure of Revenue nature only.

• Expenditure of Capital nature only.

• Receipts of Revenue nature only.

Answer 1

Income and Expenditure Account records Income and expenditure of revenue nature only.

Explanation:

Income and expenditure account is prepared by non-profit organisations to record only revenue incomes and revenue expenses of a particular period. It does not include capital receipts or capital expenditures.