The _______ Account shows the distribution of profit after the same has been earned and computed by a partnership firm.
Profit and Loss Appropriation
The correct answer is option 3. The Profit and Loss Appropriation Account is used to show the distribution of profit among the partners, after the computation of net profit from the Profit and Loss account.
Important Questions from Partnership Accounts
X and Y are partners in a partnership firm without any agreement. X has withdrawn Rs. 55,000 out of his capital as drawings. What is the interest on drawings that may be charged from X by the firm?
In case of a Partnership Firm, a ______ is prepared to show the distribution of profits among different partners.
X and Y are partners in a business sharing profit and losses in the ratio of 3 : 2. They admit Z as a new partner with 1 / 5 share in the profits. Calculate the new profit sharing ratio of the partners.
The profit for the year before appropriation in a partnership firm was Rs. 50,000. Shagun, one of the partners, receives a salary of Rs. 4,000 and interest at 10 percent per annum on his capital of Rs. 1,00,000. Amir. the other partner receives interest on capital at the same rate as Shagun. Amir's capital was Rs. 89,000. They share profits and losses equally. What was the total share of profits credited to Amir‘s current account?
X and Y are partners sharing profits and losses in the ratio of 3 ∶ 2. They admit Z as a new partner with 1/5 share in the profits. Calculate the new profit sharing ratio of the partners.
