What is Profit and Loss Appropriation Account
What is Profit and Loss Appropriation Account
Anurag Pathak Changed status to publish April 9, 2023
The profit & Loss Appropriation Account is an extension of the Profit and Loss Account.
Net Profit for the year, as per the Profit and Loss Account is transferred to the credit of the Profit & Loss Appropriation Account.
It is prepared to distribute Profit among the partners.
The following are the items recorded in Profit and Loss Appropriation Account.
Debit side
Interest on capital
Partner’s Salary
Partner’s Commission
Transfer to Reserve and Charity
Distributable profit
Credit Side
Net profit transferred from Profit and Loss A/c
Interest on partner’s drawings
The following is the Format of the Profit and Loss Appropriation Account.
Anurag Pathak Changed status to publish April 4, 2023
