Which of the following is correct in respect of NPO?

The difference between receipts and payments represents the balance of cash in hand or bank (or bank overdraft at the closing date) The difference between Income and Expenditure account is shown as either Profit or loss. Both 1 and 2 are correct. None of 1 or 2 is correct.

The difference between receipts and payments represents the balance of cash in hand or bank (or bank overdraft at the closing date)

The difference between Income and Expenditure account of NPO is called either surplus or deficit.