Why should we prepare profit
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Answer Posted / 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..
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