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What is the meaning of debit balace in income and expenditure account?
Wiki User
∙ 13y ago
Debit Balance- means outstanding balance, meaning you need to pay it!
Credit Balance- means you have over paid.
Wiki User
∙ 13y ago
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Interest that you earn on a savings account is?
The Interest you earn on a savings account is:An income for youAn expenditure for the bankIs fully taxableIs only 3.5% in IndiaEtc.
What is the difference between capital income and capital expenditure?
Income is money coming in, expenditure is money going out (spending).
Is it possible to have a negative net income and positive cash flow?
Yes and No. If the method of accounting followed is Mercantile, Yes. If the method of accounting followed is Cash System, No. In Mercantile method of Accounting, Negetive Income represents the excess of expenditure over income. In this method; Income and Expenditure considered are on accrual basis, i.e., income or expenditure is taken as such in the books of account; the moment a right to receive income or a liability to pay for expenditure has crytallised. The movement fo cash into the business or out of business is not the criteria. Therefore, inspite of a negative income in a particular year, a business may have a positive Cash flow on account of excess of cash flow arising out of previous years income, which is held as an asset in the form of Sundry Debtors, over the payments made in respect of previous years expenditure which is held as a liability in the form of Sundry Creditors on the balance sheet.
Distinquish between savings and financial surplus?
This is the difference between Income and Expenditure in a non-profit making business, where the income exceeds expenditure
What is a principle of basic financial management?
The basic principle is this. Income exceeds expenditure = PROFIT Expenditure exceeds income = LOSS No profit or loss = BREAK-EVEN
Income and Expenditure Account Meaning?
Income - is any money being paid into the business. Expenditure is anything paid out - from a paper-clip to a company car
What is the profit and loss account of charity normally called?
Income and expenditure account
Difference between income and expenditure account and p and l account?
Differences Between Receipts And Payments Account And Income And Expenditure AccountThe following are the main differences between receipts and payments account and income and expenditure account: 1. NatureReceipts and payments account is a summary of cash transactions for a period and it is a real account. Income and expenditure account is a summary of expenditure and income like trading and profit and loss account and it is a nominal account.2. ObjectiveReceipts and payments account is prepared to show cash and bank receipts and payments during the period to derive closing balance of cash and bank. Income and expenditure account is prepared to show the net result of the operation during the period to derive surplus or deficit.3. RecordingAll cash and cheque receipts are recorded on debit side of receipts and payments account where as all cash and bank payments are recorded on credit side. In income and expenditure account all expenditure of revenue nature are recorded on debit side and all incomes of revenue nature are recorded on credit side.4. Capital And Revenue ItemsThere is no distinction between capital and revenue receipts and payments in receipts and payments account. All expenses and incomes of revenue nature are recorded on accrual basis in income and expenditure account.5. ContentsReceipts and payments account contains only cash and bank transactions. Income and expenditure account contains both cash and non-cash expenses and incomes of revenue nature.6. Balance Sheet RequirementReceipts and payments account is not required to prepare balance sheet. Income and expenditure account is required to prepare balance sheet.7. AdjustmentsNo adjustments are required in receipts and payments account. In income and expenditure account adjustments are made because it is prepared on accrual basis.
What is difference between P and L statement and income and expenditure statement?
Income and expenditure account is used by not for profit companies as they are formed for not for profit basis that's why they cannot use profit and loss account.
Is credit income or expenditure?
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
Difference between receipts and payments account and income and expenditure account?
what is the different between error of transposition and casting
What do you mean by income over expenditure or expenditure over income?
income over expenditure is profitexpenditure over income is loss
How do non profit making organizations prepare their final account?
By preparing Receipts & Payments Account, Income and Expenditure Account and a Balance sheet.
How do you account for health insurance liability?
In your Income and Expenditure Account, show the Health Insurance premium paid by you as expenses and claim income tax rebate as permissible in Income Tax Act of your country.
What financial statement is prepared first in accounting?
for a manufacturing concern it will be a manufacturing account and for a non manufacturing concern it will be a trading account or a profit and loss account or income and expenditure account.
What are the Steps involved in the preparation of receipts and payments accounts from income and expenditure accountgive examples?
Ignore the opening and closing cash and bank balances on the receipts and payments account. Eliminate all items of capital receipts and payments. Figure out the income of the year by deducting the total income received and adding the income accrued. Find the expenditure of the relevant period as well. When the account is balanced, it will show the surplus or deficit of the account.
How do you make subscription adjustments in the income and expenditure account?
Subscriptions o/s for 2008-09 rs.7000
