Question

Prepare income and expenditure account for the year ended 31st March 2020

Answer 1

Answer:

Take List of expenditures as debit account and incomes as credit account into a list, add both total expenditures amount and total of income amount  and find which side is greater in amount, tally the amount of both such that both side shows same balance.

Explanation:

For example, the format looks like this pattern:

(Dr)   Expenditure                       (Cr) Income

1 Electricity                 1500          1. Rent received      5000

2. Telephone             900            2 Interest received   500

By Excess income    3100  

Total                           5500            Total                       5500