State any five features of Income and Expenditure Account.

1.	State any five features of Income and Expenditure Account.
Answer» The five features of income and expenditure account are as follows: 1. It is prepared at the end of an accounting period. 2. It contains revenue items only. 3. It is prepared on an accrual basis. 4. Income and Expenditure A/c is prepared in the same manner in which Profit and Loss A/c is prepared. 5. It is a nominal A/c. The rule of nominal A/c (debit all expenses and losses and credit all income and gains).

Answer»

The five features of income and expenditure account are as follows:

1. It is prepared at the end of an accounting period.

2. It contains revenue items only.

3. It is prepared on an accrual basis.

4. Income and Expenditure A/c is prepared in the same manner in which Profit and Loss A/c is prepared.

5. It is a nominal A/c. The rule of nominal A/c (debit all expenses and losses and credit all income and gains).

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