Question

Preparing income and expenditure account from receipt and payment account and additional information

Answer 1

Answer:

Preparation of Income and Expenditure Account

Include all items of revenue receipts and expenses, on the respective side of the account.

Ensure that no items of capital incomes and expenses are included in this account.

Also, adjustment for amounts prepaid and outstanding, with respect to each item will have to be made.

Hope it helps you...!!!