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Answer Posted / divya s k
if it the case of a partnership firm, the above mentioned
answers are correct.
In case of a joint stock company, appropriation a/c is
prepared to appropriate meaning apportioning the net profit
& transferring a portion of the profits earned to various
reserve a/cs as per the requirement of the company as well
as the companies & various other acts.
the profit arrived after such appropriations is available
for the distribution as dividends to the shareholders of the
company. unless otherwise the profits cannot be distributed
as dividends.
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