Answer / rahul dev sharma

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

Answer / nsengiyumva celestin

If any profit has been earned in limited liability
company,it should be shared among shareholders and remaining
will be put in general reserve and other reserves for future
purposes.

Answer / shweta

to appropriate the profits

Answer / nsengiyumva celestin

profit and loss appropriation account is prepared with the
main purpose of distributing profits earned by a company
over a determined period of time.
Profit should be distributed as
Dividends
capital share
reserves
special reserves
...

Answer / j0ydeep shee

The main purpose of preparing a profit and loss
appropriation account is to distribution of profits.
It basically depicts the distribution of profits into
various channels in the form of general reserves, interim
dividend, preference dividend & proposed dividend.. On one
hand it projects that how much the company is retaining its
profits for the future growth of the business or the
company & on the other hand it also shows how much the
company is paying dividend to its shareholders so that the
value of the company is been maximised..

Answer / gopal kumar bhagat

"THE COMPANIES ACT 1956" ,specifies that p/l appropriation a/c is prepared to ascertain how the net profit earned by the company is distributed among various sectors such as general reserve approx(20% of n.p),interim dividend,provision for taxation,etc...this a/c also helps the general persons to know about the net profit distribution channels of the company and make them interested to invest in their shares


by gopal bhagat
student of icai

Answer / gopal kumar bhagat

ACCORDING TO COMPANIES ACT,1956,a p/l appropriation a/c is prepared to show how the net profit or loss of the company is distributed among various areas such as general reserve aprox(20%of net profit),interim dividend,provision for taxation,etc,and also p/l appropriation gives knowledge to general public about the areas in which net profit of the company is distributed which make them interested to invest in their shares....

Answer / prasad kumar.v

Profit and loss appropriation A/c is prepared to know the surplus after deducting non-operational expenses like Corporate tax reserves tax paid dividends etc

Answer / kaptan bansal

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

Answer / j.shravan

The main objective of the profit & loss appropriation account is how the net profit are utilised.

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