Question

What is the main aim of preparing Profit and Loss Appropriation Account​

Answer 1

Explanation:

It is prepared after the preparation of profit and loss a/c at the end of every financial year. The purpose is to allow the adjustments to be made to the profits so that the final income can be divided among the partners as per the agreed terms. It is a nominal account.

Answer 2

Answer:

Profit and Loss Appropriation Account is necessary for businesses, especially partnerships because they help to allocate the net of expenditures and incomes among the various partners.