Question

income and expenditure account​

Answer 1

Answer:

The income and expenditure account is outlined by the non-trading entities to determine surplus or deficit of income over expenditures for a particular time frame. ... It is outlined as a portion of final accounts of non-trading entities and is equal to the profit and loss account outlined by for-profit business entities.

Answer 2

NPOs [Non-profit organizations] determine their surplus/deficit by preparing an Income/Expenditure account. All expenditures/losses are recorded on the debit side of the account while the incomes/gains are recorded on the credit side of the account. Like most accounts, the difference between the two sides will determine surplus or deficit.

For the calculation of consumable items, the format of an income/expenditure account is as follows:

$\begin{array}{|c|c|c|c|}\cline{1-4}\bf Expenditure & \bf Rs & \bf Income & \bf Rs\\\cline{1-4}\sf Amount\ paid\ for\ item & xx & &\\ Add: \sf Op ening\ stock & xx & &\\ Less: \sf Closing\ stock & xx & &\\ Add: \sf Closing\ creditors & xx & &\\ Less: \sf Ope ning\ creditors & xx & &\\ Add: \sf Advance\ at\ the\ beginning & xx & &\\ Less: \sf Advance\ at\ the\ end & xx & &\\\cline{1-4} & \bf xx & & \\\cline{1-4}\end{array}$

If all the items are mentioned, there isn't a need to consider the advances and creditors. But if the amount paid is given, you'll need to consider all the items in the extract.