Accountancy, asked by priyankachat289, 6 months ago


why is profit & loss appropiation account prepared
? Explain​

Answers

Answered by DheerajGuru
2

Explanation:

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

Answered by MrWanderer
17

Hey there this is your answer....!!!

The main intention of preparing a profit and loss appropriation account is to show the distribution of profits among the partners. It is debited with interest on capital and remuneration to partners and credited with the net profits b/d from the profit and loss account and interest on drawings.

hope this helps you...!!!

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