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Question
Income and Expenditure Account includes items of ____ nature only.
Options
capital
- revenue
fixed
non-recurring
MCQ
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Solution
Income and Expenditure Account includes items of revenue nature only.
Explanation:
Income and Expenditure Account is prepared by following the rule of Nominal Account i.e. debit all the expenses and losses; credit all the incomes and gains. We transfer only the items of revenue nature, which are related to the current year only.
Hence, the correct answer is option (b).
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