
In the financial Statements of Not-for-profit organisations, one of the statement Incomes and Expenditures Account is also prepared along with Receipts and Payments Account and Balance Sheet.
The Content covered in this article:
1. Meaning of Income and Expenditure Account: –
The Income and Expenditure account is similar to the Trading and Profit/Loss account prepared in the commercial(profit) organisations. All the transactions of the revenue receipts and payments related to the current year are recorded in this accounts in Not-for-Profit organisations.
The excess over the income from expenditure is known as Surplus instead of Profit and excess over the expenditure from the income id know as a deficit instead of a loss. The following is the format of the Income and Expenditure account.
2. Example of Income and Expenditure Account: –
We have created two examples for you, One is with surplus balance (Profit) and another is with deficit balance(loss). These are shown as under: –
1. With Surplus balance: –

2. With Deficit balance: –
In this example, we have just changed the balances of some amounts.

3. Format of Income and Expenditure Account: –
We have created the format of Income and Expense account in PDF and Excel. These are shown as below: –
1. The format in Excel: –
Download the Excel Sheet from the below link. It has two worksheets
- Format for Surplus Balance
- Format for Deficit Balance

2. The format in PDF: –
Download the PDF from the below link.
- Format of Income and Expenditure Account Format – Surplus Balance
- Format of Income and Expenditure Account Format – Deficit Balance
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