Question

Is defence bond an item of income and expenditure account?

Answer 1

Answer:

Here is the answer............

Answer 2

Answer:

However, interest earned on Defense Bonds is treated as revenue. Thus recorded at the Income side of Income and Expenditure Account.

Explanation:

Defence bond:

These are the government debt securities issued throughout the war. It is an emotional plea by the government to its citizens to lend money to the government. These bonds provide returns that are lower than the market rate.

• Bonds, often known as fixed-income instruments, are one of the most prevalent asset classes for individual investors, alongside stocks (equities) and cash equivalents.

Income and expenditure account:

Non-trading companies create the income and expenditure account to determine the surplus or deficit of income over expenditures for a given time period. When preparing income and expenditure accounts for non-trading companies, the cumulative or accrual accounting concept is strictly followed.

• Ordinarily, the Sale of speculation or investments, which is being offered of resources does not recorded in the Income and Expenditure Account. Profit/Loss which arises from such a deal is recorded in the Income and Expenditure account.

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