which of the following items does not appear in the Profit and Loss appropriation account:- (1)salary to partner(2) interest on capital (3) interest on drawing (4) drawings
Answers
Answer: drawings doesn't appear in profit and loss appropriation account
Answer:
(4) drawings will be the correct answer.
Appropriation is the act of setting aside money for a specific purpose. In accounting, it refers to a breakdown of how a firm's profits are divided, or to the government, an account showing which funds have been credited to a government department.
Explanation:
Profit and Loss (P&L) Appropriation Account
Profit and loss account Appropriation account is prepared to state or show how the company appropriated or distributed the profit earned during the year. It is an extension of profit and loss account. It is prepared after preparing the profit and loss account at the end of each financial year.
It is a type of special account prepared to show the distribution or sharing of profit/loss among the partners of a firm or the capital of the partner.