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Financial accounting

Nabil (Student) (41 Points)

25 November 2014

Sir Please give me the logic of income and expenditure account & receipts and payment account

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CA Raj Doshi (Practising CA) (8723 Points)
Replied 25 November 2014

NPO'S are not profit motivated. So terming the financial statements as Profit and Loss account is illogical. So new name given is Income and Expenditure account. Receipts and Payments accounts - It is same as cash and bank account together. I dont the logic.But it is like Giving different name to the financial accounts of an NPO.