Income And Expenditure Account

Expenditure £ Income

Board and lodging 624 Net take-home pay 2,380

Fares to work 290 Building society

Midday meals 200 interest 32

Clothing 210

Holiday 160

Running expenses of

motorbike 130

Depreciation of

assets 103


spending 143


Balance, being excess of income

over spending 552

2,412 2,412

Assets And Liabilities

Notice that some of the items of expenditure in the receipts and payments statement above (those marked *) are capital expenditure, not revenue expenditure, since they have resulted in the acquisition of capital assets (motorbike and radio), or of investments (payments to building society and index-linked SAYE). In properly constructed accounts such items would not have appeared in an income and expenditure account but in the balance sheet, which is a statement of all assets owned and liabilities owed. In this case the relevant balance sheet would look like the following, if we accept that the two capital... see: Assets And Liabilities

Personal And Business Finance 2018

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