Question

Write one Word / Term / Phrase for each of the following statement.

An Account, which is prepared by ‘Not for Profit’ concern, instead of Profit and Loss Account.

Answer 1

Income and Expenditure Account

Explanation: It is an account prepared by a not-for profit organisation to know the surplus/deficit earned by the organization during the accounting period. It is similar to a Profit and Loss Account prepared by the sole-proprietorship concerns. It is nominal in nature; therefore, expenses are debited and incomes are credited in this account.