Income and Expenditure Account
Income and Expenditure Accountfor 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
- If there is a Trading Profit put it on the Credit side.
- Put all the revenue incomes on the Credit side.
- Put all the revenue expenses on Debit side.
- Balance both the sides.
- If the Income side is more than the expenditure side then we get a SURPLUS.
- 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.
