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