Question

Explain the ways of distribution or appropriation of profit on the profit and loss account

Answer 1

Answer:

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Explanation:

It is a special account that a firm prepares to show the distribution of profits/losses among the partners or partner's capital. This account should not be confused with the typical Profit and Loss Account but rather seen as an extension of it as it is made after making the Profit and Loss Account.

Answer 2

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Profit and Loss Appropriation Account

After the Profit and Loss Account, Profit and Loss Account Appropriation is prepared for the firm. ... Through this account, all adjustments in respect of partner's salary, partner's commission, interest on capital,interest on drawings, etc. are made.