State the meaning of Income and Expenditure Account.

Explanation

An financial gain and Expenditure Account is that the careful outline of each financial gain and expense incurred by a company in an exceedingly specific year. ready on associate degree accounting, this account records each financial gain and expense in an exceedingly explicit year, no matter whether or not they area unit clear or not. made public by non-trading entities, this account distinguishes capital from revenue and takes solely the latter into consideration.Typically, these area unit nominal accounts, that define associate degree organization’s final accounts and area unit almost like that of profit and loss accounting by a business entity. These accounts primarily serve to seek out the excess or deficit balance of a company, taking each current financial gain and expenses into consideration.