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प्रश्न
Explain any two features of Income and Expenditure account.
उत्तर
- Periodic Statement: The Income and Expenditure account is a financial statement that provides a comprehensive overview of an organization's revenue and expenses during a specific period, usually spanning one year. It offers a concise overview of the company's financial performance for that specific time frame, with a primary emphasis on revenue generated and expenses incurred, rather than assets and liabilities.
- Non-profit Organisation: Non-profit organisations, like clubs, societies, and charitable institutions, often rely on the Income and Expenditure account to monitor their financial activities. The Income and Expenditure account focuses on revenue sources such as donations, grants, membership fees, and fundraising activities. It also includes expenses that are aligned with the organization's mission and objectives.
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संबंधित प्रश्न
Income and expenditure contain only ______ items.
Give any two uses of Income and Expenditure Account.
How is Receipts & Payments Account different from Income & Expenditure Account?
It is a summary of all incomes and expenses of the current accounting year. It is prepared to know the surplus or deficit during the accounting year.
This account is equivalent to the Profit and Loss Account of a business concern.
It serves as the basis for preparing the Balance Sheet of a non-trading organisation.
If the total of ______ side is greater than the total of ______ side, it is called 'surplus' or 'excess of income over expenditure'.
Explain the term deficit in Income and Expenditure Account.
All donations received by non-trading concerns are entered in the liabilities side of the balance sheet. Justify either for or against.
Mention any two features of the Income and Expenditure Account.
