The steps in the Process of Preparing Profit and Loss Appropriation account are :
(A) Transfer the net profit to the credit side of P & L Appropriation A/c
(B) Divide the Profit among partners in the Profit Sharing ratio
(C) Ascertain net profit after providing for all charges
(D) Debit the P & L Appropriation A/c with all appropriations like partners salary etc.
(E) Credit the P & L Appropriation A/c with interest on drawing and deficiency on account of partner's guarantee of earnings to the firm.
Choose the correct answer from the options given below :
The steps in the Process of Preparing Profit and Loss Appropriation account are :
(A) Transfer the net profit to the credit side of P & L Appropriation A/c
(B) Divide the Profit among partners in the Profit Sharing ratio
(C) Ascertain net profit after providing for all charges
(D) Debit the P & L Appropriation A/c with all appropriations like partners salary etc.
(E) Credit the P & L Appropriation A/c with interest on drawing and deficiency on account of partner's guarantee of earnings to the firm.
Choose the correct answer from the options given below :
Solution
Steps: first ascertain net profit after all charges (C), transfer it to the credit side of P&L Appropriation A/c (A), debit appropriations like partners salary (D), credit interest on drawings and guarantee deficiency (E), then divide remaining profit in PSR (B). Hence C, A, D, E, B.
Related questions:
2026: 31 May Shift 1
2025: 30 May Shift 1
2025: 24 May Shift 1