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Questions
What is Income and Expenditure Account?
What do you mean by Income and Expenditure Account?
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Solution
- An Income and Expenditure Account is a financial statement used largely by non-trading organizations, such as non-profits, clubs, and societies, to assess their financial success over a given time period, usually a year.
- It records all revenues (income) and spending (expenditure) related to the organization's activities during that time period, determining whether there is a surplus (excess income over expenditure) or a deficit (excess expenditure over income).
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RELATED QUESTIONS
Income and Expenditure Account is a ______ account.
Income and expenditure contain only ______ items.
Give any two uses of Income and Expenditure Account.
______ account is prepared to ascertain surplus or deficit at the end of an accounting year.
The closing balance of this Account shows surplus or deficit for the year.
This account is equivalent to the Profit and Loss Account of a business concern.
It serves as the basis for preparing the Balance Sheet of a non-trading organisation.
Explain the term surplus in Income and Expenditure Account.
Explain the term deficit in Income and Expenditure Account.
State any one point of difference between Receipt and Payment account and Income and Expenditure Account.
