What is Incomes and Expenditures Account – format in Excel & PDF

In the financial Statements of Not-for-profit organisations, one of the statements Incomes and Expenditures Account is also prepared along with the Receipts and Payments Account and Balance Sheet. 

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 these 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 is known 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: –

In the Books of Tutor’sTips Social Welfare Club
Receipts and Payment Account as on 31 March 2020
Receipts	Amount	Payment	Amount
To Balance b/d		By Salaries a/c	2,00,000
Cash In Hand	25,000	By Insurance a/c	2,500
Cash at Bank	1,50,000	By Rent a/c	60,000
To Subscriptions a/c	5,00,000	By Printing and Stationery a/c	10,000
To Entrance/Admission Fees  a/c	50,000	By Postage and Telegarm a/c	5,000
To Sale of old Assets  a/c (Book Value 2500)	3,310	By Mobile and Telephone charges  a/c	1,250
To Sale of old Newspapers a/c	1,256	By Audit Fees a/c	2,500
To Rent Received for hall a/c	20,000	By Interest paid a/c	3,200
To Interest Received a/c	1,250	By Honorarium  a/c	6,000
To Dividend Received  a/c	2,510	By Refreshment  a/c	250
To General Donation  a/c	50,000	By Building a/c	8,00,000
To Donation for building a/c	10,00,000	By Miscellaneous Exp a/c	50
To Miscellaneous Receipts  a/c	250
		By Balance c/d (Closing Balance)
		Cash in Hand	30,000
		Cash at Bank	6,83,826
	18,03,576		18,03,576

Additional Information: –
a) Salaries Outstanding at the end Rs. 5,000
b) Salaries Outstanding in the beginning Rs. 3,500
c) Insurance Advance Insurance at end Rs. 500
d) Rent Outstanding in the beginning Rs. 5,000
e) Rent Outstanding at the end Rs. 10,000
f) Subscription Outstanding in the beginning Rs. 30,000
g) Subscription Outstanding at the end Rs. 25,000
h) Subscription Advance in the beginning Rs. 12,500
i) Subscription Advance at the end Rs. 25,000
Please prepared Income and expenditure accounting for the year ending 31-03-21

Solution: –

2. With Deficit balance: –

In this example, we have just changed the balances of some amounts. Which I have highlighted with red color. 

In the Books of Tutor’sTips Social Welfare Club
Receipts and Payment Account as on 31 March 2020
Receipts	Amount	Payment	Amount
To Balance b/d		By Salaries a/c	3,00,000
Cash In Hand	25,000	By Insurance a/c	2,500
Cash at Bank	1,50,000	By Rent a/c	60,000
To Subscriptions a/c	2,00,000	By Printing and Stationery a/c	10,000
To Entrance/Admission Fees  a/c	50,000	By Postage and Telegarm a/c	5,000
To Sale of old Assets  a/c (Book Value 2500)	3,310	By Mobile and Telephone charges  a/c	1,250
To Sale of old Newspapers a/c	1,256	By Audit Fees a/c	2,500
To Rent Received for hall a/c	20,000	By Interest paid a/c	3,200
To Interest Received a/c	1,250	By Honorarium  a/c	6,000
To Dividend Received  a/c	2,510	By Refreshment  a/c	250
To General Donation  a/c	50,000	By Building a/c	8,00,000
To Donation for building a/c	10,00,000	By Miscellaneous Exp a/c	50
To Miscellaneous Receipts  a/c	250
		By Balance c/d (Closing Balance)
		Cash in Hand	30,000
		Cash at Bank	6,83,826
	18,03,576		18,03,576

Additional Information: –
a) Salaries Outstanding at the end Rs. 5,000
b) Salaries Outstanding in the beginning Rs. 3,500
c) Insurance Advance Insurance at end Rs. 500
d) Rent Outstanding in the beginning Rs. 5,000
e) Rent Outstanding at the end Rs. 10,000
f) Subscription Outstanding in the beginning Rs. 30,000
g) Subscription Outstanding at the end Rs. 25,000
h) Subscription Advance in the beginning Rs. 12,500
i) Subscription Advance at the end Rs. 25,000
Please prepared Income and expenditure accounting for the year ending 31-03-21

Solution: –

3. Format of Income and Expenditure Account: –

We have created the format of the 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 

1. Format for Surplus Balance 
2. Format for Deficit Balance

2. The format in PDF: –

Download the PDF from the below link. 

1. Format of Income and Expenditure Account Format – Surplus Balance
2. Format of Income and Expenditure Account Format – Deficit Balance 

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