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Why should we prepare profit

Answers were Sorted based on User's Feedback



Why should we prepare profit..

Answer / rehan

Profit and loss appropriation account is prepare to konw how profit and loss distributed among the partners.........this video is best to understand the p/l app. a/c..........

http://www.youtube.com/watch?v=qMtWUFzx4Zw

Is This Answer Correct ?    0 Yes 0 No

Why should we prepare profit..

Answer / akash

p/l Appropriation account is prepared after we enter the Net profit in the Balance sheet and we take that Net Profit as the opening balance in the next year.

It is prepared to appropriate/distribute the funds in various dimensions such as Reserves.

Is This Answer Correct ?    0 Yes 0 No

Why should we prepare profit..

Answer / apala saxena

Profit and loss appropriation account is prepared to show the distribution of profit among partners

Is This Answer Correct ?    0 Yes 0 No

Why should we prepare profit..

Answer / ashif

The purpose of preparing of profit and loss account ..it will show company all profit and ...finally it will easy to find company Financial Reporting and accounting

Is This Answer Correct ?    0 Yes 0 No

Why should we prepare profit..

Answer / abhishek

the main purpose of preparing the appropriation account is to show the distribution of the business profits to the partners.

Is This Answer Correct ?    1 Yes 3 No

Why should we prepare profit..

Answer / viswam

1.what happend to the previous and curren profits
2.how these profits had been distributed can be known from
profitor loos appropriation account

Is This Answer Correct ?    8 Yes 11 No

Why should we prepare profit..

Answer / sonam wangda

is it neccessary to prepare?

Is This Answer Correct ?    5 Yes 8 No

Why should we prepare profit..

Answer / chandru

to check wheather the firm ascrtain the profit or loss...
during the curent accounting period

Is This Answer Correct ?    28 Yes 40 No

Why should we prepare profit..

Answer / illuruviswam

The purpose of preparing profit&loss appropriation account
is "how the company has been utilized its profits.this word
better to use in company form of accounting than partnership.

Is This Answer Correct ?    7 Yes 19 No

Why should we prepare profit..

Answer / rajesh sharma

In concern is built to many department or products in a
business for we better result we also keen to know the
actually performance of various department or product, It
is necesary prepare P & L A/c appropriation.

Is This Answer Correct ?    5 Yes 21 No

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