Question

Billiard table is a revenue expenditure?

Answer 1

Answer:

For preparing an income and expenditure account, follow the steps as listed below.

• Include all items of revenue receipts and expenses, on the respective side of the account.
• Ensure that no items of capital incomes and expenses are included in this account.
• Also, adjustment for amounts prepaid and outstanding, with respect to each item will have to be made.
• Further, items included in receipts and payment account, depreciation, provisions, and profit or loss on sale of assets will have to be included in this account.
• Finally, after putting down all items of revenue and expenses, you’ll get a balance. The resulting balance will then reveal the surplus or deficit for the period.