Question

What Are the Uses of Income and Expenditure Account?

Answer 1

The uses of income and expenditure account are as follows:

1. It shows the surplus or deficit arising from the non-trading activities of a business during the accounting period.
2. It is the basis of preparing the balance sheet of a non-trading concern at the end of an accounting year.

Also read:

• Income and Expenditure Account Based on Trial Balance
• Income and Expenditure Account

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