Question

The closing balance of this account shows surplus/deficit ______.

Options

• Profit & Loss Account

• Receipts & Payments Account

• Balance Sheet

• Income & Expenditure Account

Answer 1

The closing balance of this account shows surplus/deficit income & Expenditure Account.

Explanation:

Non-profit clubs and societies utilise the Income & Expenditure account to track income and expenses. During a set length of time, usually a financial year. This account’s ending balance shows whether there is a surplus (if income exceeds expenditure) or a deficit (if expenditure exceeds income) for the given time.