Income and Expenditure Accounts

This is the profit and loss account of a non-trading organization.

It contains only revenue items that will be debited with all the expenditures and credited with all incomes of the business for a particular period of time – whether it has or have not actually been paid or received within that period of time.

The final balance of an income and expenditure account represents the excess of income for the period. Note that a receipt and payment account is not a substitute for an income and expenditure account. 

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