Commercial Applications
Identify which of the following does not have an opening balance.
- Balance sheet
- Income and Expenditure
- Receipts and Payment account
- Profit and Loss account
Accounting
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Answer
Income and Expenditure
Reason — Income and Expenditure Account does NOT have an opening balance. It is prepared afresh every year for the current accounting year only. In contrast, Receipts and Payments Account starts with the opening balance of cash in hand and at bank, while Balance Sheet shows the opening capital fund position.
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Related Questions
Which of the following is not a feature of Balance Sheet?
- It is statement
- Reflects profit-loss of an organization
- It shows Capital Fund of the organization
- It shows financial position of the organization
…………… depicts the Capital fund of the organization.
- Profit and Loss Account
- Trading Account
- Balance Sheet
- Nominal Account
…………… 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