PARTNERSHIP — FUNDAMENTALS
Profit and Loss Appropriation
Account/ ਲਾਭ-ਹਾਨੀ ਸਮਾਯੌਜਨ ਖਾਤਾ
Entries
for interest on capital, interest on Drawing, Salary to Partners, Commission to
Partners and Division of profits among the Partners will be passed only Profit and
Loss Appropriation Account.
Features of Profit and Loss
Appropriation Account: ਲਾਭ-ਹਾਨੀ ਸਮਾਯੌਜਨ ਖਾਤਾ ਦੀਆਂ ਵਿਸ਼ੇਸ਼ਤਾਵਾਂ
1.
It is a nominal account.
2.
It is prepared only by Partnership Firms.
3.
It is prepared just after Profit and Loss Account.
4.
It shows how the net Profit for the accounting period is appropriated among the
partners.
5.
Entries in this account are made giving effect to partnership deed
Difference between Profit and
Loss Account and Profit and 1,055 Appropriation Account: ਲਾਭ-ਹਾਨੀ ਖਾਤੇ ਅਤੇ ਲਾਭ-ਹਾਨੀ ਸਮਾਯੋਜਨ ਖਾਤੇ
ਵਿੱਚ ਅੰਤਰ:
|
S. No. |
Profit and Loss Account |
Profit and Loss Appropriation Account |
|
1. |
It is prepared after trading Account |
It is prepared after Profit and Loss
Account |
|
2. |
It is prepared to calculate Net Profit
or Net Loss |
It is prepared to distribute Net Profit among
the partners. |
|
3. |
This Account has neither opening balance
nor closing balance. |
This Account may have opening as well as
closing balances. |
|
4. |
This Account is not prepared on the
basis of Partnership Agreement. |
This Account is prepared on the basis of
Partnership Agreement. |
|
5. |
Matching principle is followed |
Matching principle is not followed |
