Accountancy Part AAccounts for Non Profit Organsiation

Which of the following items is not presented in Income and Expenditu…

Which of the following items is not presented in Income and Expenditure A/c?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Opening and Closing Balances of Cash

The Income and Expenditure Account is prepared on the accrual basis and holds only the revenue items of the year.

Option (1) Opening and Closing Balances of Cash — Correct. Cash and bank balances are not income; they appear in the Receipt and Payment Account only.

Option (2) Depreciation of Fixed Assets — A true statement. It is presented: it is an expense of the year even though no cash is paid.

Option (3) Accrued Interest on Investment — A true statement. It is presented: income earned but not received is included on the accrual basis.

Option (4) Profit or Loss on sale of fixed Assets — A true statement. It is presented: it is taken in while working out the surplus or deficit.

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), and it is also out of the CUET 2026 syllabus.

NCERT (Pre-rationalised edition):
Income and Expenditure Account – “It is the summary of income and expenditure for the accounting year. It is just like a profit and loss account prepared on accrual basis in case of the business organisations.”

NCERT (Pre-rationalised edition):
Steps in the Preparation of Income and Expenditure Account

Extract from the NCERT textbook