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If there is loss instead of profit on which side is final loss distributed in Profit and Loss Appropriation Account?

Answer and explanation

Correct answer: On credit side to partners accounts

Loss is debited to partners accounts and its second effect may be credit in appropriation account. Remember the double effect.

Related tags

Loss DistributionAppropriation AccountDouble EffectProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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