Give any TWO Features of Income and Expenditure Account .

1.	Give any TWO Features of Income and Expenditure Account .
Answer» Features of Income and Expenditure Account. Income and Expenditure account is Nominal Account for which the rule of debit and credit, is debit all expenses or losses and credit all income or gain. Expenditures are recorded at the debit side and income is posted at the credit side of this account. It records only revenue expenditure, capital expenditures are not recorded in it. Income and expenditures are shown on accrual basis. Excess of income over expenditure is known as surplus. In case of profit and loss account, it is said as net income.

Answer»

Features of Income and Expenditure Account.

Income and Expenditure account is Nominal Account for which the rule of debit and credit, is debit all expenses or losses and credit all income or gain.
Expenditures are recorded at the debit side and income is posted at the credit side of this account.
It records only revenue expenditure, capital expenditures are not recorded in it.
Income and expenditures are shown on accrual basis.
Excess of income over expenditure is known as surplus. In case of profit and loss account, it is said as net income.

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Give any TWO Features of Income and Expenditure Account .

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