Question

prepare income and expenditure account for the year ended 31st March 2021 from the following​

Answer 1

Prepare Income and Expenditure Account for the year ended 31st March 2021 from the given.

Answer: Refer the attachment.

(Income and Expenditure Account prepared.)

Surplus (excess of income over expenditure) : 3,50,000.

Meaning of Income and Expenditure Account:

Income and Expenditure Account is a nominal account, it shows all revenue incomes and revenue expenses of the concern.

It is similar to Profit and Loss Account.

It is prepared to find out surplus [excess of income over expenditure] or deficit [excess of expenditure over income.]

The surplus or deficit is transferred to Capital Fund.

If there is surplus, it is added to capital fund, whereas if there is a deficit, it is deducted from it.