Question

State whether the following statements are True or False.

The final balancing amount of Income and Expenditure Account represents either surplus or Deficit.

Answer 1

True

Explanation: Income and Expenditure Account is prepared to ascertain the financial performance of an NPO. If the income side exceeds the expenditure side, the balancing figure is surplus and if the expenditure side exceeds the income side, the balancing amount is regarded as deficit.