What is profit and loss appropriation?//////////Why is profit and loss appropriation accounts important?//FEATURE

Meaning of Profit and Loss Appropriation Account It is a special account that a firm prepares to show the distribution of profits/losses among the partners or partner’s capital.

Profits are an important part of a business so as its allocation. That is why the Profit and Loss Appropriation Account is an important part of an organization. Profit and Loss Appropriation Account is necessary for businesses, especially partnerships because they help to allocate the net...

FEATURE---------------------------- 1. it is the extension of the profit and loss a/c

2 it is prepred only by the partnership firms

3 it shows the appropriation of net profit for the accounting period