can Profit and Loss appropriation account ever have Debit balance?
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Answer: it may be yes
Explanation:The profit and loss appropriation account is set up like other general ledgers. It usually consists of a debit column and a credit column. The debits include items such as the funds that are transferred back to the general profit and loss account at the end of the accounting period. Other debits include money put in the general company reserve accounts, accounts designated for dividend payments and payments made on items such as income taxes.
Ajit754:
Sorry But Imo It's an Incorrect one cause P&L App. A/c is opened for Distribution of profits among the partners i.e the profit what we get In P&L a/c is trfd. to P&L app. for distribution among the partners in terms of items like salary ,Commission and other remunerations like Int. on capital etc.
I mean P&L app. a/c :) Autocorrect su!cks!!
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