diffrence between income and expenditure account and profit and loss account
The difference between Income and Expenditure Account and Profit and Loss Account is given below.
Income and Expenditure Account
Profit and Loss Account
Prepared by Non-Profit Organisations whose main aim is not to earn profits.
Prepared by Profit-Earning Organisations whose main aim is to earn profits.
Prepared on the basis of Receipts and Payments Account with additional information.
Prepared on the basis of Trial Balance with additional information.
Primary motive to find out excess of income over expenditure or excess of expenditure over income.
Primary motive to find out net profit or net loss during the year.
Reveals surplus or deficit.
Reveals net profit or net loss.