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).
