Multiple choice

Profit and Loss Appropriation Account is prepared for

  1. proprietorship

  2. partnership firm

  3. both (1) and (2)

  4. none of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Profit and Loss Appropriation Account is specifically used by partnership firms to distribute profit among partners after charging interest, salary, commission, etc. Proprietorship firms don't need this account - they directly transfer profit to capital account.