Question

State the meaning of Income and Expenditure Account.​

Answer 1

Answer:

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income and expenditure a/c is

Not for profit organization prepare income nd expenditure a/c which is similar to profit nd loss a/c of a trading concern.It is a nominal a/c and is debited with all expenses or losses and credited with all incomes nd gains.

At the end of the accounting year if the credit side of the A/c exceeds the debit side (income over expenditure)it results in surplus and if expenditure over income it results in deficit.

The surplus has to be either added to capital fund or can be utilised in the manner provided in the specific provisions of such organisations and similarly the deficit decreases the capital fund.

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Answer 2

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