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Income and Expenditure Account

 

Income and Expenditure Account

for the year ended 31 December 2010

Dr.

 

 

Cr.

Expenditure

Amount

Income

Amount

Revenue expenses only

XXXX

 

 

 

 

Trading Profit (if any)

Revenue Incomes only

XXXX

XXXX

Surplus

(when income is more than expenditure)

 XXXX

Deficit

(when expenditure is more than income)                             

xxxxx

 

XXXXX

 

XXXXX

 

Step in constructing a Income and Expenditure Account

  1. If there is a Trading Profit put it on the Credit side.
  2. Put all the revenue incomes on the Credit side.
  3. Put all the revenue expenses on Debit side.
  4. Balance both the sides.
  5. If the Income side is more than the expenditure side then we get a SURPLUS.
  6. If the Expenditure side is more than the income side we get a DEFICIT.

Note

  • Only revenue receipts and expense are posted in this account
  • Only incomes and expenses pertaining that particular year are recorded. Incomes and expenses pertaining to previous year or future year are adjusted for.

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