Question on: WAEC Accounting - 2016
Which of the following is a credit item in an income and expenditure account?
A
Electricity
B
Donations
C
Stationery
D
Bar suppliers
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Correct Option: B
In the income and expenditure account, Expenditure (payments)Ā is recorded on theĀ debit sideĀ andĀ income (receipts)Ā is recorded on theĀ credit side. If the credit side exceeds the debit side, it is called a surplus. On the other hand, if theĀ debit sideĀ exceeds theĀ credit side, there is a deficit. From the options given, only ''donations'' is an income the rest are all expenses.
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