BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Electricity
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Donation
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Stationery
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Bar suppliers
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Detailed explanation-1: -Explanation. In the income and expenditure account, Expenditure (payments) is recorded on the debit side and income (receipts) is recorded on the credit side.
Detailed explanation-2: -The amount of general donation is an income and we credit it to Income and Expenditure Account. Specific Donation: In case the donor specifies the purpose for which the donation should be used, it is a Specific Donation.
Detailed explanation-3: -Profit on sale of fixed asset is shown in income and expenditure account.
Detailed explanation-4: -Income and expenditure account is like a profit & loss account. Only difference is that income & expenditure account is prepared by the non trading organization. This records only revenue nature items.