Question

What is the difference between Profit and Loss And Profit and loss appropriation account​

Answer 1

Difference between Profit and loss:

A Profit and Loss Account presents the result of the undertaking at a particular date. ... All the nominal accounts are closed by transferring to Profit and Loss Account, i.e. these accounts do not exist. 5. The difference in Profit and Loss Account represents net profit or net loss.

Profit and Loss appropriation:

The profit and loss appropriation account is an extension of the profit and loss account. The main intention of preparing a profit and loss appropriation account is to show the distribution of profits among the partners.

Answer 2

Explanation:

Profit and Loss Account is an account which is prepared to record all Revenues and Expenses to ascertain Net Profit or Net Loss. Profit and Loss Appropriation Account is prepared to allocate Profit/Loss between the co owners of a Business. Profit and Loss Account is prepared after Trading or Manufacturing Account.