Preparation of income and expenditure account - class-XII
|Description: Preparation of income and expenditure account|
|Number of Questions: 15|
|Created by: Avatara Chahal|
|Tags: accountancy elements of accounts book keeping and accountancy accounting for not-for-profit organization accounts of non-trading concerns accounting for not-for-profit organizations financial statements of not-for-profit organisations accounts of not-for-profit organisation accounts of 'not for profit' concerns accounting for non trading organisations and professional persons accounts of non-trading organisations|
Income and Expenditure account is ______ to account like Profit and Loss account.
Income and Expenditure account is prepared by non-trading concern to reveal the surplus or deficit arising out of the operating activities during the accounting period. It is one of the final accounts of non-trading concern like the profit and loss account of the trading concern,
In Income and Expenditure account all Expenditure are recorded on ______________.
In income and Expenditure account all expenditure are recorded on the debit side whereas all incomes are recorded on credit side of Income and Expenditure account.
Any revenue expense for which a separate fund is available will be ___________.
Separate funds are those funds which are earmarked for a specific activity. In case of fund based accounting, all the incomes related to that particular activity is credited to that fund and all the expenses debited to that fund. For example, Building fund, Sports fund etc.
Non-trading institutions prepare ___________.
Non trading organizations like professionals i.e doctors, chartered accountants, lawyers are preparing the income and expenditure account.
The revenue receipts are to be shown on ______side.
Receipts may be classified as revenue receipts and capital receipts.
Income and Expenditure Account belongs to ______ account.
Every business have to make its financial statement at the end of every year which includes profit & loss account and balance sheet.
Income and Expenditure accounts shows a balance of ________________.
Income and expenditure account is prepared by a non-trading concern to reveal the surplus or deficit arising out of the operating activities during the accounting period.
Income and Expenditure account is ________ by balance sheet whereas Receipt and Payment account is __________by balance sheet
Receipt and Payment is summarized statement of cash transactions during an accounting year hence it is not accompanied by balance sheet. The account through which surplus or deficit of a non-profit-seeking concern is ascertained is called Income and Expenditure account.
The balance of Income and Expenditure account represents:
Income and expenditure is a nominal account, It is similar to profit and loss account. It either represents deficit or surplus at the end of the year. Therefore, it either shows surplus that is excess of income over expenditure or deficit which is excess of expenditure over income.
Income & Expenditure A/c is prepared by transfer of :
(I) Nominal accounts
(II) Real accounts
(III) Personal accounts
The correct answer is ___________________.
Option D is correct. Nominal account is related to expenses or losses and incomes or gains. Income and Expenditure account is an account prepared by non trading concerns to ascertain surplus or deficit of income over expenditure for a particular period. So Income and Expenditure account is a Nominal account.
Specific donations received will appear on ____________.
Specific donations are the amount received by organisaton as funding. The amount is not received for any work and hence has to be considered as a liability and to be recorded under liabilities head in the balance sheet.
Rs. 1,00,000 received as the annual membership subscription. Out of this Rs. 20,000 is pertaining to the previous accounting period, whereas Rs. 10,000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting year.
Subscription amount to be shown in income and expenditure account can be calculated using the formula given below:
Given : Stock of stationery on Jan. 1, 2015 Rs 200; payments for stationery during 2015 Rs 1,000; and stock of stationery on Dec. 31, 2015 Rs 50.
What will be the amount posted to Income and Expenditure A/c for the year ending Dec. 31, 2015?
Stationery amount to be shown in income & expenditure account can be calculated using the formula given below:
Income and Expenditure Account records income and expenditure item of ____________________.
Income and Expenditure Account is prepared on an accrual basis. All incomes and expenses relating to the accounting year, whether they are actually received and paid or not, are taken into consideration. Expenditure is recorded on the debit side and income is recorded on the credit side. A distinction is made between capital and revenue items and only revenue items are included in this account.
The income and expenditure account is prepared on the basis of __________ system of accounting.
Financial Accounting is based on dual system of accounting.Income & expenditure account is also based on this basic system of accounting.