| Home> Class-12> BOOK KEEPING AND ACCOUNTANCY >Q 73 |
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Que : 73. Write the characteristics of Income and Expenditure accounts. |
Answer: Characteristics of income and expenditure account- i. it is a nominal account and therefore, all revenues and expenses and losses incurred are recorded on the debit side and all revenue are recorded on the credit side of this account. ii. it records only those income and expenses which relate to the current accounting period. iii. it follows the accrual basis of accounting to ascertain surplus or deficit arising after meeting all the revenue expenses against all revenue income at the end of the accounting period. |
