Interested to Buy Any Domain ? << Click Here >> for more details...
what is profit & Loss Appropriation A/c. why it is
prepered? what are its benefit for a company
- 4 Answers
- 17637 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 |
Post New Answer View All Answers
what are the limitations of accounting ratios?
HOW CAN WE CONVERT IN CFT TO A ROUND LOG??
What is the general net worth percentage banks will observe while sanctioning the Loans for Tranding, Construction and Manufacturing units.
when an amountis declared as NPA by a bank whether any interest can be debited to that account after the date it is declared as NPA ? What are the guidelines of Reserve Bank of India in this respect ?
explain the relevance of closing stock account in trading a/c when preparing the gross profit?
how to account branches in tally
what is the diffrence between cash flow & cash fund?
total assets are equal to total liabilities in final accounts ?why?
What is accounting for plant assets?
1.A Company with a net income of $ 7,650 in a year and has 3,000 outstanding shares. Calculate the Earning per Share (EPS).
what is casual receipt? is it exmpted in income tax?
Explain what are the rules for debit and credit for different accounts to increase the amount in your business accounts?
What are the uses of journal in accounting?
In india i did MA BE.d but now i am applying for student visa in australia in masters of professional accounting will i face any problem in interview call that why u change ur course how i ill support my answer
shyam consigned 200000 unit @ rs 5/-each to mr ram and paid freight and insurance amounting to rs 100000.ram spent further following amount: 1) insurance rs 5000 2) godown rent rs 4000 3) clearing rs 6000 2000 unit were damages during transits due to heavy rains. Ram sold 100000 unit @rs 10 per unit . ram realisec solvage value of damage unit rs .2000 ram is get 5% commission on sale determine the abnormal loss?
