Question

Which one of the following items cannot be recorded in profit & loss appropriation a/c?​

Answer 1

Answer:

A Profit and loss Appropriation account is an account which is prepared after profit and loss account and is usually prepared by partnership firms for distribution/allocation of profit earned by the firm to partners. Salary/commission to manager is an item of Profit and loss account. Only items relating to partners will be entered in Profit and loss Appropriation like interest on capital, profit, interest on drawings, salary/commission to partners.

Answer 2

Answer:

A profit and loss appropriation account is an account which is prepared after profit and loss account and is usually prepared by partnership firms for distribution /allocation of profit earned by the firm to partners. Salary commission to manger is an item of profit and loss account.