Question

What is the nature of the income and expenditure account?

Answer 1

Income and Expenditure Account is an ostensible/true record. Along these lines, the standard of accrual basis is recorded (charge all costs and misfortunes and credit all salaries and gains) is followed while setting it up. While setting up the record, just things of income nature are recorded and all things of capital nature are overlooked.

Also see:

• Income and Expenditure Account
• Difference Between Capital Expenditure and Revenue Expenditure
• Classification of Expenditure

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