Loading....
Coupon Accepted Successfully!

 

Profit and Loss Appropriation Account

The profit and loss appropriation account is an extension of the profit and loss account. The main intention of preparing a profit and loss appropriation account is to show the distribution of profits among the partners. It is debited with interest on capital and remuneration to partners and credited with the net profits b/d from the profit and loss account and interest on drawings. The balance of the profit and loss appropriation account is transferred to the capital accounts of the partners.

Difference between Charge against profits and Appropriation of profits



 





Test Your Skills Now!
Take a Quiz now
Reviewer Name