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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
Unidentified
spending 143
1,860
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