Question

after the incorporation of a company all profit and losses are transferred to _____ a/c.
1)tracking
2)revelation
3)profit and loss appropriation
4)retaliation ​

Answer 1

Answer:

3) Profit an Loss appropriation A/c.

After the incorporation of a company all profit and losses are transferred to profit and loss appropriation A/c.

Explanation:

Profit and loss appropriation A/c is also known as below the line items account. It is the account from which provisions are created, dividends are paid and surplus/ Losses available are transferred to general reserve A/c.

It is also used to adjust last year taxes paid and refund received.

It is also called as profit and loss adjustment A/c.

Answer 2

After the incorporation of a company all profit and losses are transferred to (3) profit and loss appropriation a/c.

Definition of profit appropriation;

Appropriation is keeping the money on one side for specific purpose. The firm's profit are divided up for the government.  

Definition of profit and loss appropriation account;

Profit and loss appropriation account is an official/formal account made for the use of distributing profit and losses among the partners in context of interests on capitals, interests on drawings, salary/commission and transfer to partners.

Benefits of profit and loss appropriation account;

• The profit and losses made by the company or the organizations are shown and distributes at the end of every year.
• The adjustments are made among the partners for the final income of the profit.
• It is referred as a nominal account that signifies the expenditure items of the firm/company are debited, and income items are credited.
• All the statements of the income items and expense items that gained the profit are recorded within a reporting time period.

Therefore, profit and loss appropriation account called as a nominal account is recorded for the purpose of distributing profit and losses among the partners of a firm.