What is income and expenditure account?

 a) What is income and expenditure account?

An income and expenditure statement are a type of financial document designed to identify all forms of income that is received within a given period, while also documenting all payments or expenditures that were related to that same period.

Sample of Income and Expenditure A/c

ABC Company
Income and Expenditure A/c
1-Apr-21 to 31-Mar-22
	ABC Conmpany
Particulars	1-Apr-21 to 31-Mar-22
Income Statement:
Indirect Incomes		530000.00
Grant	530000.00
		530000.00
Indirect Expenses		516041.00
Administration and Project Expenses	501316.00
Depreciation	14725.00
Nett Profit:		13959.00

b) What Is a Profit and Loss (P&L) account?

Profit and loss (P&L) statement refers to a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a quarter or financial year.

These records provide information about a company’s ability or inability to generate profit by increasing revenue, reducing costs, or both.

P&L statements are often presented on a cash or accrual basis.

Company managers and investors use P&L statements to analyse the financial health of a company.

ABC Company
Profit & Loss A/c
1-Apr-21 to 31-Mar-22
	ABC company			ABC Company
Particulars	1-Apr-21 to 31-Mar-22		Particulars	1-Apr-21 to 31-Mar-22
Indirect Expenses		516041.00	Indirect Incomes		530000.00
Administration and Project Expenses	501316.00		Grant	530000.00
Depreciation	14725.00
Nett Profit		13959.00
Total		530000.00	Total		530000.00

c) What is difference between income and expenditure account and P & L accounts?

There is no difference between income statement and profit and loss account.

An income statement is often referred to as a P&L. The income statement is also known as the statement of income or statement of operations.

For further reading What is the meaning of Accounting Concept?

Happy Reading!!

Nadeem Khan
M.Com, MBA
Mail Id- ndmk1338@gmail.com