Which transactions are recorded in income and expenditure account?

Revenue nature only

Transactions recorded in the income and expenditure account typically include those of a revenue nature only. The income and expenditure account is used in organizations like non-profit entities to record their day-to-day operational income and expenses. It is designed to measure the organization's net income or surplus over a specific accounting period, similar to the profit and loss account for a for-profit business. Transactions of a capital nature, such as the acquisition or disposal of long-term assets, are not recorded in the income and expenditure account. Instead, they are typically recorded in the balance sheet or statement of financial position to reflect the organization's financial position over time.