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Why do you prepare a P/L Appropriation a/c?

Answer Posted / jubeda

TO KNOW THE NET PROFIT OR LOSS IN THE BUSINESS. WHEN THERE
IS ADJUSTMENT STATING THAT SALARY /COMMISSION TO PARTNER,
INTEREST ON CAPITAL, INTEREST ON DRAWINGS THEN WE PREPARE
THE PROFIT & LOSS APPROPRIATION A/C AND TO GET THE ACTUAL
NET PROFIT/LOSS OF THE FIRM/CO./BUSINESS.

Is This Answer Correct ?    11 Yes 6 No



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