Which of the following is not prepared by a partnership?
Answer Details
The income and expenditure account is not prepared by a partnership.
The income and expenditure account is a statement that shows the income earned and the expenses incurred by non-trading organizations such as clubs, societies, and charities. On the other hand, a partnership is a form of business organization that engages in trading activities, buying and selling goods or services for profit.
Partnerships prepare trading accounts, which show the gross profit earned from trading activities, and profit and loss accounts, which show the net profit or loss of the partnership. Additionally, partnerships prepare profit and loss appropriation accounts, which show how the profits are shared among the partners.