Question

Non profit organization prepare:
(a) income & expenditure account
(b) manufacturing account
(c) profit & loss account
(d) trading account​

Answer 1

Answer:

c.profit and loss account is the right answer so you can go through this answer

Answer 2

Answer:

Income & Expenditure Account

Explanation:

The revenue and expenditure account is created by non-trading businesses to determine whether there is an excess or a deficit of income over expenses for a given time period. The cumulative or accrual approach of accounting is closely followed when developing the income and spending accounts of non-trading organisations. It is prepared as part of the final accounting for non-trading companies and is comparable to the profit and loss statement provided by for-profit businesses.

The following is a list of an income and expense account's characteristics:

Non-trading entities' accounts for income and expenses and trading entities' accounts for profit and loss are very similar.

It is made by strictly observing the double-entry system's accounting or bookkeeping rules.

At the conclusion of the time period, which is frequently a year, it is always ready.

It establishes the surplus or deficit in the non-trading firms' income over expenses for the specified year.

The surplus or deficit from the revenue and expenditure account is moved to the capital fund account

 Accounts of revenue-only nature  are included in income and expense account. Revenue and expenses associated with capital are excluded.

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