Question : Profit and Loss Appropriation Account is prepared to
Option 1: creat Reserve Fund
Option 2: find out Net Profit
Option 3: find out Divisible Profit
Option 4: none of these
Answer (1)
23rd Jan, 2024
Correct Answer: find out Divisible Profit
Solution : Profit and Loss Appropriation Account is prepared to find out a divisible profit. In this account, appropriations made to partners are recorded. Hence, the correct option is 3.
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