Question

Select the most appropriate answers from the alternatives given below and rewrite the sentences.

‘Not for Profit’ Concerns prepare _________________ Account instead of Profit and loss Account.
a) Trading
b) Income and Expenditure
c) Cash
d) Receipts and Payments

Answer 1

‘Not for Profit’ Concerns prepare Income and Expenditure Account instead of Profit and loss.

Explanation: Not-for Profit concerns prepare Income and Expenditure Account to ascertain the surplus/deficit resulting from the activities of an organisation. Like Profit and Loss Account, Income and Expenditure Account is prepared as a part of final accounts. All revenue expenses and all revenue incomes are recorded in this account.