GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income and Expenditure Account is prepared in non-trading concerns in lieu of
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Cash book
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Trading account
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Profit and loss account
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Manufacturing account
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Explanation:
Detailed explanation-1: -The income and expenditure account is prepared by the non-trading entities to determine surplus or deficit of income over expenditures for a particular time frame. The accumulated or accrual concept of accounting is rigidly pursued while preparing income and expenditure a/c of non-trading concerns.
Detailed explanation-2: -The Not-for-Profit Organisations usually prepare the Income and Expenditure Account and a Balance Sheet with the help of Receipt and Payment Account.
Detailed explanation-3: -Income and Expenditure account is prepared on an accrual basis. While preparing the account, only items of revenue nature are recorded and all items of capital nature are ignored. Q.
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