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Question

Income and Expenditure Account of a non-profit organisation is a ________________.

A
Real account
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B
Nominal Account
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C
Personal Account
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D
Representative Personal Account
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Solution

The correct option is B Nominal Account
The income and expenditure account of a non-profit organization is a nominal account. A nominal account records all the revenues, losses, gains and expenses. An income and expenditure account is similar to a profit and loss account. Nominal accounts have no balance at the end of the year.

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