What is Income & Expenditure account ? why and by whom income and expenditure account is prepared?
Answers
Answer:
the income and expenditure account is prepared by the non-trading entities to determine surplus or deficit of income over expenditures for a particular time frame. The accumulated or accrual concept of accounting is rigidly pursued while preparing income and expenditure a/c of non-trading concerns. It is prepared as a portion of final accounts of non-trading entities and is equal to the profit and loss account outlined by for-profit business entities.
Answer:
Explanation:
Income and expenditure account
Income and expenditure account is equivalent to profit and loss account ,it is prepared by a non profit organisation (NPO's) only items of revenue nature pertaining to current year are recorded ,all the expendeture are recorded in the debit side and all incomes are recorded in the credit side of income and expenditure account the result of income and expendeture account is either surplus or deficit if surplus added with capital fund if deficit deduct with capital fund