Question

Income and expenditure account is prepared on what basis

Answer 1

The income and expenditure account is prepared on the accrual basis. All the cash and non-cash revenue expenses and incomes are transferred to the income and expenditure account. The income and expenditure account is prepared on the basis of receipts and payments account.

Answer 2

The income and expenditure account is prepared on the accrual basis. All the cash and non-cash revenue expenses and incomes are transferred to the income and expenditure account. The income and expenditure account is prepared on the basis of receipts and payments account.