Why is Profit and loss appropriation account prepared? – InterviewSolution

1.	Why is Profit and loss appropriation account prepared?
Answer» The profit and loss appropriation account is an extension of profit and loss account prepared for the purpose of adjusting the transactions relating to amounts due to and amounts due from partners. It is nominal account in nature. The balance being the profit or loss is transferred to the partners’ capital or current account in the profit sharing ratio.

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