Practicing Success
Practicing Success
CUET Preparation Today
| Income and Expenditure account prepared by the Not-for-Profit Organisation at the end of a period reveals: |
Excess of income over expenditure or expenditure over income Net Profit or Net Loss Cash Balance at the end Accrual Balances |
| Excess of income over expenditure or expenditure over income |
| An income and expenditure account of a non-profit organisation serves as a summary of financial activities throughout the accounting year, similar to a profit and loss statement prepared using accrual accounting principles in the context of businesses. It exclusively encompasses revenue-related items, with the final balance indicating either a surplus (where income exceeds expenditure) or a deficit (where expenditure surpasses income). This surplus, generated from the excess of income over expenditure, is not distributed among members; instead, it is directly added to the capital fund as displayed in the balance sheet. |
