Question

explain in detail How Income and Expenditure Account is prepared from Receipts and Payment Account?​

Answer 1

Answer:

Income and Expenditure Account is prepared on an accrual basis. All incomes and expenses relating to the accounting year, whether they are actually received and paid or not, are taken into consideration. Expenditure is recorded on the debit side and income is recorded on the side

Explanation:

Receipts: Amt

Balance b/d: 5,000