Financial Statements of Not-for-Profit OrganisationsQ-1 | Not-for-Profit OrganisationsQuestion 5124 of 44
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Income and Expenditure A/c

Options

A
B
C
D
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Correct Answer

✅ Option — Correct Option

All Options:

  • A
  • B
  • C
  • D

Detailed Solution & Explanation

Income and Expenditure A/c:  Income & Expenditure Account - is just like a profit & Loss account.  All the expenses for that year i.e., related to that year, will be debited to it.  All the incomes related to that year will be credited to it.  If the credit side is more, the balance is known as "Surplus" (Profit).  If the debit side is more the balance is known as "Deficit" (Loss) which is then  Transferred (Surplus is credited/Loss is debited) to the capital account of the Association/Trust which is known by different names such as Trust Fund/General Fund/Capital Fund etc.

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