Question

Difference between profit and loss adjustment account and revaluation account ?

Answer 1

Answer:

Profit and Loss Appropriation Account is then followed by the preparation of Profit and Loss Adjustment Account. ... On the other hand, Revaluation Account as mentioned in the study material is prepared just to revalue the assets and the liabilities on the eve of the reconstitution of partnership.

Answer 2

Answer:

P&L account is used to determine Net Profit or Net Loss of an organization for a given accounting period. P&L appropriation account is used for allocation and distribution of Net Profit among partners, reserves and dividends. ... Matching principle is not followed while preparing a P&L appropriation account.