Question

What Items Are Recorded in Income and Expenditure Account?

Answer 1

Income and expenditure account is prepared on an accrual basis. In an income and expenditure account, the income is recorded on the credit side while expenditure is recorded on the debit side.

Only revenue items are recorded in the income and expenditure account.

Also read:

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