The main features of income and expenditure account can be highlighted as follows:
1. No Opening Balance
Opening balance is not require to prepare income and expenditure account.
2. Accrual Basis
Income and expenditure account is maintained on accrual basis.
3. Based On Receipt And Payment Account
Income and expenditure account is prepared on the basis of receipt and payment account at the end of the accounting year.
4. Non-cash Items
This account records non-cash items also.
5. Debit And Credit Rule
Expenses and losses are debited and incomes are credited as it is a nominal account.
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6. No Capital Transactions
Only revenue items are included in income and expenditure account. So, capital items are excluded while preparing this account.
7. Only Current Year's Transactions
Income and expenditure account includes only current periods transactions.
