The main purpose of preparing a Profit and Loss 
Appropriation account is "Distribution of profits".

In partnership firm "p\L A\C approciatoin" will prepare to 
distribution of profit or loss

In corporated company prepare to adjust the suspence a\c 
amount or transfer to next year it will happn in the case 
of while preparing final accounts any  difference will come 
transfered to suspense a\c it will happen at that time 
suspense amt will rectify with preparing p\L Appropriation 
A\C

to check wheather the firm ascrtain the profit or loss... 
during the curent accounting period

The main purpose of preparing a profit and loss 
appropriation account is Distribution of profits.

The purpose of preparing profit&loss appropriation account
is "how the company has been utilized its profits.this word
better to use in company form of accounting than partnership.

In concern is built to many department or products  in a 
business for we better result we also keen to know the 
actually performance of various department or product, It 
is necesary prepare  P & L A/c appropriation.

In respect of Companies , P & L Appropriation is made to
show how the profits of companies have been appropriated (
To set apart for a specific use ).
For example - Net Profit transffered to General Reserve ,
proposed dividend etc.
These items show how the profit is assigned to different
purposes .

1.what happend to the previous and curren profits
2.how these profits had been distributed can be known from 
profitor loos appropriation account

The profit & Loss a/c appropriation a/c is prepared to show 
how the profit of a company are allocated.

The main purpose of preparing a profit and loss 
appropriation account is to distribution of profits.

in this case two entries has to be passed, the first entry 
will be .
rent a/c..........dr
  to cash.........
2-advace rent a/c dr
  to cash

Rent A/C Dr    3000.00
   To Cash A/C      3000.00
( BEING CASH PAID FOR THE MONTH OF JAN TO MARCH )

rent a/c 3000/-
adv rent received 9000/-
to Cash 12000/-

rent received for Jan, feb & mar. balance need to be 
adjused when required through JV

Rent A/C Dr    3000.00
   To Cash or Bank A/C   3000.00
( BEING CASH PAID FOR THE MONTH OF JAN TO MARCH )

WHEN RENT IS PAID
RENT ADVANCE A/C DR
  TO CASH


WHEN RENT BECOMES DUE
RENT A/C DR
  TO RENT ADVANCE A/C