The five features of Income and Expenditure Account are as follows :
(i) It is prepared at the end of an accounting period i,e., end of the financial year.
(ii) It contains revenue nature items only, no capital nature item is included while preparing income and expenditure accounts.
(iii) It is prepared on an accrual basis, means incomes and expenses pertaining to current year only are recorded.
(iv) Income and Expenditure Account is prepared in the same manner in which Profit and Loss Account is prepared.
(v) It is a nominal Account which means all expenses and losses are to be debited and all income and gains are to be credited.