CUET UG•Accountancy•MCQ
Q13. Profit and loss Appropriation A/c includes:
Choose an option
Correct Answer
a
Detailed Explanation
Profit and Loss Appropriation Account is used to allocate and distribute profits among partners or stakeholders. It typically includes expenses and payments related to the distribution of profits.Profit and Loss Appropriation Account includes:A. Interest on capital: This represents the interest paid to partners on their capital investments in the business.B. Interest on drawing: This accounts for any interest charged on partners' drawings if applicable.C. Partner's salary: This reflects any salaries or remuneration paid to partners as part of the profit-sharing arrangement.(Rent to partners and Interest on outsider's loan are charges against profit, debited to P&L A/c, not P&L Appropriation A/c.)