Question

how will you convert the receipts and payment account into an income and expenditure account ?long answer question please tell me in hindi its urgent .​

Answer 1

[Hello Mate]

{Answer}

The following steps should be carefully followed to convert the receipt and payment account to an income and expenditure account.

1. Exclude the opening cash and bank balance and similarly the closing cash and balances.

2. Eliminate all items of capital receipts and payments.

3. Exclude income of the previous period and any income received in advance.

Exclude expenditure of the previous or the coming period.

4. Include all incomes relating to the current period but not received as yet.

Include all expenditure relating to the current period but not paid as yet.

5. Provision for bad debts and depreciation on fixed assets should be made and charged to income and expenditure account.

(Hope it helps)

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Answer 2

Answer:

There are 7 steps are taken for preparing income and expenditure account from a recipient and payment accounts.

They are,

1. Exclude the opening & closing cash and bank balance.
2. Exclude all capital payments and receipts as these are shown on the balance sheet.
3. Exclude any income received for the previous period and any payment received in advance.
4. Similarly exclude the expenditures for the previous period and the coming period.
5. Include all the incomes that are related to the current period but which are yet to be received.
6. Include all expenditures for the current period which are not yet paid
7. Provisions for bad debts and depreciation on fixed assets should be charged to the income and expenditure account.