Question

Which of the following shows transactions related to one year?

• A. Receipts and Payments A/c
• B. Income & Expenditure A/c
• C. Balance Sheet
• D. None of these

Hint:

Receipts & Payments A/c → all periods; Income & Expenditure A/c → one year only.

Answer 1

The Correct Option is B

Step 1: Receipts and Payments A/c.
This account records all cash transactions (current year + previous year + future year). It is not limited to one year.
Step 2: Income & Expenditure A/c.
This is similar to a Profit & Loss A/c, prepared only for one accounting year. It includes only current year’s revenue incomes and expenses on accrual basis.
Step 3: Conclude.
Thus, Income & Expenditure A/c shows only one year’s transactions.
Final Answer: \[ \boxed{\text{Income & Expenditure A/c}} \]