Income and expenditure a/c is made :
Answers
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 credit side......
Income & Expenditure a/c shall be prepared for non-profit making organisation. Profit and loss a/c means indication of net profit or loss for doing of some business or activity with the motto to earn profit so it is prepared for profit motto organisations. Income & Expenditure a/c means indication of how much income earned and what is expenses and not involved profit or loss question for doing of business or activities just of social service motto. So for non-profit motto organisations there is no question of profit earning so need not to be consider profit or loss for doing activities so prepares Income and expenditure a/c.