Question : The profit and loss appropriation account is prepared by
Option 1: Sole trader firm
Option 2: Partnership firm
Option 3: Both 1 and 2
Option 4: None of these
Answer (1)
24th Jan, 2024
Correct Answer: Partnership firm
Solution :
Answer =
Partnership firm
The profit and loss appropriation account is an extension of the Profit and loss account. A profit and loss appropriation account is prepared to carry out adjustments to the partner's rights and obligations, like salary. The profit and loss appropriation account is prepared by a partnership firm to allocate net profits or losses among partners based on agreed-upon ratios, ensuring transparent distribution of financial outcomes.
Hence, the correct option is 2.
Comments (0)
Related Questions
Trending Articles/News
