Question

. which of the following statement is not true for income and expenditure account.

(a) It records items of revenue nature only.

(b) Items recorded in relate only to the current Period.

(c) Depreciation is not recorded in this account.
(d) Does not have an opening balance.​

Answer 1

(a) is not true and thus is the correct answer

income and expenditures account records items having both revenue and expense nature

Answer 2

Option (c) is the correct answer

Depreciation is not recorded in this account.

• The income and expenditure account, which is similar to a profit and loss account, is an apparent account.
• Every expenditure is recorded on the charge and credit sides, and every income is recorded on the credit side.
• It keeps track of all earnings and expenses on a gathering basis, which means as and when they are recognised or incurred.
• As a result, items associated with the present time frame must be documented exactly as they were.
• Hence The absence of depreciation in this account is not a norm for the Income and Expenditure Account.