Question

Income & Expenditure A/c is prepared by transfer of :
(I) Nominal accounts
(II) Real accounts
(III) Personal accounts
The correct answer is ___________________.

• A. (II) and (III) only
• B. (I) and (II) only
• C. All (I), (II) and (III)
• D. (I) only

Answer 1

The correct option is D (I) only

Option D is correct. Nominal account is related to expenses or losses and incomes or gains. Income and Expenditure account is an account prepared by non trading concerns to ascertain surplus or deficit of income over expenditure for a particular period. So Income and Expenditure account is a Nominal account.