|
Answer» Profit and loss APPROPRIATION account :- The main INTENTION of preparing aprofit and loss appropriation account is to show the distribution of profits among the partners. It is debited with interest on capital and REMUNERATION to partners and credited with the net profits b/d from the profit and loss account and interest on drawings.
profit and loss revaluation account :- Revaluation account is a nominalaccount prepared for the purpose of distributing and transferring the profitor loss arising out of increase or decrease in the book value of assets and/ or liabilities of the partnership FIRM at the time of Change in profitsharing ratio, admission of a partner, retirement of a partner
|