Follow Our FB Page << CircleMedia.in >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...


what is profit & Loss Appropriation A/c. why it is
prepered? what are its benefit for a company

Answers were Sorted based on User's Feedback



what is profit & Loss Appropriation A/c. why it is prepered? what are its benefit for a compan..

Answer / sudhansu dash

After preparation of Trial Balance we have to prepare our
income statement. Now a days this has been directlly
reflect in your concern statement whoever mantain the books
in electronic form.

We prepare the Profit and Loss account to get the net
profit or loss. So, like that we prepare Profit and Loss
Appropriation account to transfer our profit to various
reserve, devidend and retain earning account.

It will help the stakeholders to know the appropriate use
of the profit of the company by that we can establish the
position of the company.

Is This Answer Correct ?    14 Yes 2 No

what is profit & Loss Appropriation A/c. why it is prepered? what are its benefit for a compan..

Answer / sankeerthana

Profit and Loss apportionment account is prepared by the
partnership firms. Thru this nett result will be
apportioned among the partners.It will be prepared on the
closure date.

Is This Answer Correct ?    18 Yes 8 No

what is profit & Loss Appropriation A/c. why it is prepered? what are its benefit for a compan..

Answer / hunny gupta

Profit and loss Appropriation A/C shows the appropriation
(distribution)of the profit calculated by preparing P&L A/c,
It' debit side shows items like the dividend proposed by the
company, provision for Corporate Dividend tax (on such
dividend), legal reserve and Interim Dividend.
While it's credit side shows the profit of P&L A/c, balance
of surplus of last year, provision no longer required.
The balancing figure, profit (Surplus)is
shown in the balance sheet under the head 'Reserves and
surplus'.
It should be noted that even though The Companies Act does
make it compulsory ti prepare this A/c, it is advisable to
do so because Profit & loss shows only expenses and charges
against profit, it does not shows it's appropriation.

Is This Answer Correct ?    8 Yes 1 No

what is profit & Loss Appropriation A/c. why it is prepered? what are its benefit for a compan..

Answer / abdullah amer

profit and loss account is the account prepared to find
out net profite or loss of the business during the
period.

Is This Answer Correct ?    4 Yes 11 No

Post New Answer



More Accounting General Interview Questions

RPC Ltd. follows the written down value method of depreciating machinery year after year due to (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above

0 Answers  


Tell us do you have any idea about service tax or excise?

0 Answers  


What is TDS ? How its entry will be passed in accounting book ?

2 Answers  


capcity utillization

0 Answers  


What is LC?

5 Answers  






which is the first bank established in india?

1 Answers   IBPS,


Name three (3) fixed-income security types

2 Answers  


Explain what are the rules for debit and credit for different accounts to increase the amount in your business accounts?

0 Answers  


What are time sheets?

0 Answers  


why current ratio is 2:1.why it is not 100:1,10:1,20:1 in current ratio. please tell me....

8 Answers   Thomson Reuters,


Proprietor paid amount of Rs. 11060/- for car insurance. Pass Journal.

0 Answers  


how to posting tally esi employer contribution and pf employer contibution not included in salary

1 Answers  






Categories