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