List FOUR features of an income and Expenditure Account. – NABTEB QUESTION

Features of an Income and Expenditure Account are:

i. Only incomes meant for the year of accounting whether actually received or not will be accounted for

ii. Only expenditures meant for the current year whether paid or not will be accounted for in the account

iii. It is usually headed “Income and Expenditure Account for the year ended 31st December 20…….

iv. It has expenditure at the left hand side and income at the right hand side.

v. It is a nominal account

vi. The difference between the income and expenditure figures is the surplus or deficit as the case may be.

vii. The surplus or deficit in the account will be added or subtracted from the accumulated fund figure in the Balance Sheet.