Profit & Loss Appropriation Account in Partnership Accounts

Like a limited company, the profit & loss appropriation of a partnership is prepared immediately after the Profit & Loss Account.

[ Refer to Question To Accounting Test No P 1on preparation of partnership’s profit & loss appropriation account]

Format Of Profit & Loss Appropriation of a partnership:

$

$

Salaries:

A: x

B: x

X

Net Profit b/f

X

Interest on capital:

A: x

B: x

X

Interest on drawings:

A: x

B: x

X

Balance in sharing ratio:

A: x

B: x

X

X

X

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