Question

Distinguish between Income and Expenditure Account and Profit and Loss Account.

Answer 1

Difference between Income and Expenditure Account and Profit and Loss Account :
$\begin{array}{ccc}\text{Basic}& \text{Income and Expenditure Account}& \text{Profit and Loss Account}\\ \text{Objective}& \text{Its main objective is to ascertain}& \text{Its main objective is to ascertain}\\ & \text{Surplus or Deficit.}& \text{Profit and Loss.}\\ \text{Maintained by}& \text{Not for profit organisations.}& \text{Firms whose motive is to earn profit.}\\ \text{Basis of preparation}& \text{Prepared with the help of Receipts}& \text{Prepared with the help of Trial}\\ & \text{and Payments Account.}& \text{Balance.}\\ \text{Balance}& \text{Surplus or Deficit.}& \text{Profit or Loss.}\end{array}$