Question

Difference between profit and loss adjustment account and profit and loss appropriation account

Answer 1

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.

P&L account is prepared by all types of businesses.

Answer 2

Profit & Loss Account :-

Profit & Loss Account :- ♥ It is prepared after trading account .

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss .

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss . ♥ This account is not prepared on the basis of partnership agreement .

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss . ♥ This account is not prepared on the basis of partnership agreement .♥ Expenses debited to this account are charge against profits .

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss . ♥ This account is not prepared on the basis of partnership agreement .♥ Expenses debited to this account are charge against profits . Profit & Loss Appropriation Account :-

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss . ♥ This account is not prepared on the basis of partnership agreement .♥ Expenses debited to this account are charge against profits . Profit & Loss Appropriation Account :- ♥ It is prepared after profit & loss account .

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss . ♥ This account is not prepared on the basis of partnership agreement .♥ Expenses debited to this account are charge against profits . Profit & Loss Appropriation Account :- ♥ It is prepared after profit & loss account . ♥ It is prepared to distribute the net profit of the year among the partners .

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss . ♥ This account is not prepared on the basis of partnership agreement .♥ Expenses debited to this account are charge against profits . Profit & Loss Appropriation Account :- ♥ It is prepared after profit & loss account . ♥ It is prepared to distribute the net profit of the year among the partners . ♥ This account is prepared on the basis of partnership agreement .

Profit & Loss Account :- ♥ It is prepared after trading account . ♥ It is prepared to ascertain net profit or net loss . ♥ This account is not prepared on the basis of partnership agreement .♥ Expenses debited to this account are charge against profits . Profit & Loss Appropriation Account :- ♥ It is prepared after profit & loss account . ♥ It is prepared to distribute the net profit of the year among the partners . ♥ This account is prepared on the basis of partnership agreement . ♥ Items debited to this account are appropriation of profits .