Income & Expenditure Account
The Income & Expenditure Account (I&E) is the annual financial statement of a housing co-operative society that shows all income earned and expenses incurred during the year on an accrual basis, resulting in a surplus or deficit.
What is Income & Expenditure Account?
The Income & Expenditure Account is the co-operative society equivalent of a Profit & Loss Account in a company. It captures maintenance income, interest on investments, other receipts, and all operating expenses for the financial year.
The I&E is prepared on accrual basis — income is recognized when due, not when received. Outstanding maintenance is included as income; outstanding creditors are included as expenses.
Why it matters
The I&E is one of three statements required for Form J audit (along with the Receipts & Payments Account and Balance Sheet). Without it, the audit cannot be completed.
The I&E tells members and the committee whether the society is self-sustaining or running at a deficit. A recurring deficit means maintenance charges need revision.
Legal & regulatory context
The format for the I&E Account is prescribed in the Maharashtra Co-operative Societies (Accounting) Rules. Bye-law 70 requires the committee to prepare and present these accounts at the AGM within 6 months of year-end.
Auditors verify the I&E against supporting vouchers, bank statements, and the member ledger. Discrepancies are reported in Form J.
How SocietyBee handles it
SocietyBee generates the Income & Expenditure Account in the bye-law prescribed format automatically from the posted vouchers and bill collection data. The treasurer does not need to prepare it manually.
Try SocietyBee free →Frequently asked questions
What is the difference between I&E Account and Receipts & Payments Account?
The I&E Account is on accrual basis (income/expense when due). The Receipts & Payments Account is a cash-basis summary of actual money received and paid. Both are required for housing society audit.
Can a society show a surplus in I&E?
Yes, and it should. Surplus goes to the society's Accumulated Fund, increasing the corpus. A deficit means the society spent more than it earned and should be addressed by revising charges.