Question

income and expenditure account is prepared:​

Answer 1

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The income and expenditure account is an account prepared by non-trading concerns to ascertain surplus or deficit of income over expenditures for a particular period. ... The accrual concept of accounting is strictly followed while preparing income and expenditure account of non-trading entities.

Answer 2

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.