Four Types of Institutions that Prepare Income and Expenditure Account:

1. Non-Profit Organizations: Non-profit organizations are institutions that work for social welfare or other non-commercial purposes. They include charitable organizations, educational institutions, and religious organizations. These organizations generate revenue from donations, grants, and membership fees. They prepare an income and expenditure account to record their revenue and expenses.

2. Clubs: Clubs are institutions that provide recreational activities to their members. They include sports clubs, social clubs, and hobby clubs. Clubs generate revenue from membership fees and charges for activities. They prepare an income and expenditure account to record their revenue and expenses.

3. Hospitals: Hospitals are institutions that provide medical services to patients. They include private hospitals and government hospitals. Hospitals generate revenue from fees charged for medical services. They prepare an income and expenditure account to record their revenue and expenses.

4. Government Agencies: Government agencies are institutions that serve the public. They include police departments, fire departments, and public utilities. Government agencies generate revenue from taxes and fees charged for their services. They prepare an income and expenditure account to record their revenue and expenses.

Explanation:

An income and expenditure account is a financial statement that shows the revenue and expenses of an institution over a period of time. The revenue includes all the income generated by the institution, while the expenses include all the costs incurred by the institution. The income and expenditure account is used to determine the surplus or deficit of an institution.

Non-profit organizations, clubs, hospitals, and government agencies are some of the institutions that prepare income and expenditure accounts. These institutions generate revenue from various sources such as donations, grants, membership fees, and charges for services. They incur expenses such as salaries, rent, utilities, and supplies.

Preparing an income and expenditure account helps these institutions to monitor their financial performance and ensure that they are operating within their budget. It also helps them to identify areas where they can reduce expenses or increase revenue. The income and expenditure account is an important tool for financial management and decision-making.

Charitable schools
charitable hospitals
clubs