Which of the following will be included in preparing of Income and Expenditure Account.
A. Opening and Closing balances of Cash and Bank
B. Amount of revenue received in advance
C. Loss on sale of Asset
D. Purchase of Books
E. Depreciation of Fixed Asset
Choose the correct answer from the options given below:
This question was previously asked in
Shift 12/06/2023 12:00 PM - 2:00 PM
A
B, C, D and E only
B
C and E only
C
A, B, C and E only
D
A and D only
Correct Answer
C and E only
Detailed Explanation
C.Loss on sale of Asset: While gains on the sale of assets are not considered (as they are capital in nature), losses are relevant and are included in the Income and Expenditure Account.
E. Depreciation of Fixed Asset: Depreciation is a non-cash expense that represents the wear and tear of fixed assets over time. It is deducted to reflect the true cost of using those assets during the accounting period.
Excluding option D (Purchase of Books) as it is not directly related to income and expenditure,
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