— Kishore V, SME and ACW at Edumarz
Profit and Loss Appropriation A/c:
- The Profit and Loss Appropriation Account is just a continuation of the firm’s Profit and Loss Account.
- It depicts how earnings are allocated or dispersed among partners.
- This account is used to make changes to the partner’s compensation, commission, interest on capital, interest on drawings, and so on.
- It all starts with the Profit and Loss Account‘s net profit/net loss.