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The Profit and Loss Appropriation Account is an extension of the
ABalance Sheet
BProfit and Loss Account
CTrading Account
DCash Flow Statement
Answer & Solution
Correct answer: B. Profit and Loss Account
It continues from the P&L Account to appropriate the net profit among the partners.
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Collectively, partners carrying on a business are called aOpening capital ₹1,00,000; additional ₹50,000 introduced after 6 months; interest at 10% p'Guarantee of profit to a partner' means the partner getsRent paid to a partner for using their premises isP and Q share 1:1. P is guaranteed ₹25,000 minimum by Q. Profit ₹40,000. After guarantee, The document containing the terms of partnership is theIf a partner's capital account shows a debit balance, it usually means the partner hasNet profit ₹90,000; A's salary ₹12,000; interest on capitals ₹18,000 total. Profit availab