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
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.
Question : Partner's salary is debited to:
Question : Interest on partner's drawings is credited to:
Question : Interest on capital to partners is credited to:
Question : Rent paid to a partner is debited to:
Question : Which of the following items is not recorded in Profit and Loss Appropriation A/c?
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