Now, enter the following things in the datasheet. It will navigate you to the data entry sheet. From your main template sheet, click on the Data button. Income and Expenditure Account records the non-cash expenditure such as depreciation also. Please follow me to learn how to use this template to track your expenses: 1. The difference between the two sides is either surplus( if the total of the credit side is more than the debit side) or deficit( the debit side is more than the credit side), which is added or deducted from Capital Fund in Balance Sheet, as the case may be. The surplus or deficit ascertained from the Income and Expenditure Account is transferred to Capital Fund in the Balance Sheet. Income and Expenditure Account is prepared on accrual basis of accounting and records income and expenses of revenue nature only. It is prepared at the end of accounting year by debiting all the expenses and losses and crediting all incomes and gains of the concerned year in this account to ascertain the result of either surplus or deficit. Income and Expenditure Account is a nominal account prepared by not-for-profit organisations to ascertain the surplus or deficit of the organisation for the current accounting year.
