Question

What do you mean by profit and loss appropriation account?

Answer 1

Dear Student,
Profit and loss appropriation account is an extension of profit and loss account which basically shows the distribution of profits and losses among partners as per the provisions of the partnership deed.
Key Features of profit and loss account;
* It is an extension of Profit and Loss Account.
* It is a nominal account.
* It is only prepared by partnership firms.
* It represents the appropriation of net profit for the particular accounting period.
Regards.