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In which situation is the Profit and Loss Appropriation Account prepared?

Answer and explanation

Correct answer: To show appropriation of net profit among partners

This account shows salary interest and profit distribution after net profit. Treat it separately from the Profit and Loss Account.

Related tags

PartnershipAppropriation AccountBasic ConceptAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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