Question

In the Income and Expenditure Account, all incomes received during the year irrespective of the year for which they are received, are to be recorded. (State True or False)

Answer 1

FALSE...

IN
INCOME AND EXPENDITURE AC ONLY CURRENT YEAR TRn WILL BE RECORD.

Answer 2

In the Income and Expenditure Account, all incomes received during the year irrespective of the year for which they are received, are to be recorded. - False

• Income and Expenditure Account tracks all income related to the current year, regardless of whether or not the money is earned in cash. In other words, in that year itself, income earned during a year is accounted for.
• Income received in advance will be shown on the balance sheet side of the liabilities and will also be deducted from the total amount received in the year.
• On the other hand, on the asset side of the balance sheet, income earned but not collected which is the deferred tax is shown and on the debt side of the income and expenditure ledger is also shown.