# Difference Between Appropriation of Profit and Charge Against Profit

 Appropriation of profit Charge against profit It is the distribution of net profit to various heads It is the deduction from revenue to ascertain net profit or net loss It is made only if there is a profit It is made even if there is a loss It is done after the creation of all the charges It is done before the appropriation of profit This will be debited to P/L Appropriation A/c It will be debited to P/L A/c or debited to the respective provision A/c Examples: transfer to general reserve, transfer to contingency reserve Examples: Provision for doubtful debts, Provision for depreciation, provision for discount on debtors etc.