Question

Write characteristics of income & expenditure a/c.
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Answer 1

Answer:

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Characteristics of Income and Expenditure Account

It's nature similar to the Profit and Loss Account as made by the for-profit concerns. ... Unlike the Receipts and Payments Account, it does not start with an opening balance and ends with a closing balance. It strictly follows the accrual basis of accounting.

Answer 2

Answer:

1.Non-trading concerns prepare this account.

2.It’s nature similar to the Profit and Loss Account as made by the for-profit concerns.

3.It determines the surplus or deficit of income over expenditures

4.The concern prepares this account by strictly following the Double Entry System.

5.The surplus or deficit of this account is transferred to the capital fund account.

6.It strictly follows the accrual basis of accounting.

7.An independent auditor has to audit this account for the validation of the account.