Commercial Applications
…………… account is prepared to ascertain surplus or deficit at the end of an accounting year.
- Income and Expenditure
- Balance sheet
- Profit and Loss
- Receipts and Payment
Accounting
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Answer
Income and Expenditure
Reason — Income and Expenditure Account is prepared by a non-trading organisation to ascertain the surplus or deficit for an accounting year. It is equivalent to the Profit and Loss Account of a business concern and is prepared on accrual basis with the help of the Receipts and Payments Account and other adjustments.
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Related Questions
…………… is a summary of cash transactions.
- Income and Expenditure Account
- Balance Sheet
- Profit and Loss Account
- Receipts and Payment Account
The closing balance of this account shows surplus / deficit:
- Profit & Loss Account
- Receipts & Payments Account
- Balance Sheet
- Income & Expenditure Account
…………… records all cash transactions whether they belong to the current year, previous year or future year.
- Profit & Loss Account
- Income & Expenditure Account
- Receipts & Payments Account
- Personal Account
With reference to Receipts & Payments Account which feature(s) is/are correct?
Statement 1: It is a real account.
Statement 2: It reveals the surplus or deficit for the year.
Statement 3: It is a summary of cash receipts.
Statement 4: It contains non-cash items.
- 1 and 3
- 2 and 4
- Only 3
- Only 4