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    Question

    It is a special account that a firm prepares to show the distribution of profits/losses among the partners or shareholders. Name of such account is:

    A Profit and loss account Correct Answer Incorrect Answer
    B Balance sheet Correct Answer Incorrect Answer
    C P & L Appropriation account Correct Answer Incorrect Answer
    D Trading account Correct Answer Incorrect Answer
    E Cashflow Account Correct Answer Incorrect Answer

    Solution

    The P & L Appropriation Account is typically used in partnership firms and limited companies to distribute the profits or losses among the partners or shareholders. It is used to record the appropriation of profits, such as dividends, interest on capital, and other profits or losses allocated to partners or shareholders.

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