what is profit & Loss Appropriation A/c. why it is
prepered? what are its benefit for a company
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Answer Posted / sudhansu dash
After preparation of Trial Balance we have to prepare our
income statement. Now a days this has been directlly
reflect in your concern statement whoever mantain the books
in electronic form.
We prepare the Profit and Loss account to get the net
profit or loss. So, like that we prepare Profit and Loss
Appropriation account to transfer our profit to various
reserve, devidend and retain earning account.
It will help the stakeholders to know the appropriate use
of the profit of the company by that we can establish the
position of the company.
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