What is difference Between Income & Expenses

Income consists of followings:

• Revenue from the sale of goods or services
• Other items of income such as interest received from investments
• Gains from disposing of non-current assets for more than the amount at which they are carried in the records (carrying amount).
• For example, if a machine is sold for Rs. 15,000 when its value in the statement of financial position is Rs. 10,000, there is a gain on disposal of Rs. 5,000. The term ‘revenue’ means income earned in the course of normal business operations. In a statement of comprehensive income , revenue and ‘other income’ are reported as separate items.

Expenses consist of followings:

• Expenses arising in the ordinary course of activities
• Including the cost of sales
• Wages and salaries
• The cost of the depletion of non-current assets,
• Interest payable on loans and so on losses arising from disasters such as fire and flood, and also losses from disposing of non-current assets for less than their carrying value in the statement of financial position.