Question

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.

Options

• Receipts and Payments Account

• Income and Expenditure Account

• Balance Sheet

• None of these

Answer 1

Income and Expenditure Account

Explanation:

1. Income and Expenditure Account is an account prepared by a non-trading organisation to ascertain the surplus or deficit for an accounting year.
2. It contains all incomes and expenses relating to the current year, whether actually received/paid or not.