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Income and Expenditure Account:


The main features of Income and Expenditure Account:
               i)      It is prepared for an accounting period on accrual concept following the matching principle.
               ii)     Only revenue items are considered, while capital item are excluded.
               iii)   All items both cash and non-cash (depreciation) are recorded
iv)       Expenditure are recorded on the debit side and incomes on the credit side

v)          Difference is known as Surplus (if come in Expenditure side) or Deficit (if come in Income side).