Question

The surplus / deficit of not-for-profit organisation is ascertained by

(A) Income & Expenditure A/c

(B) Receipts and Payments A/c

(C) Profit & Loss A/c

(D) Income Statement

Answer 1

Correct option is: (A) Income & Expenditure A/c

Income and Expenditure Account is a detailed summary of every income and expenditure incurred by an organization in a specific financial year. This account prepared on accrual basis records every income and expenditure in a particular year, regardless of whether they are explicit or not.